August 17, 2007

External demand fueling sharp rise in Czech poultry prices

Poultry meat prices in the Czech Republic are expected to rise sharply thanks to higher grain prices, breeders and meat processors told local media Wednesday (Aug 15).

Meat processors are hoping for a 30-percent hike but retailers are expected to work hard to push prices down. Pork prices are expected to rise as well.

Prices are expected to rise in September, when more expensive grains from this year's harvest are fed to animals.

Although there have been no domestic factors to push up grain prices, higher demand from the EU is pushing up exports and hence prices.

Higher external demand for poultry meat also meant that retailers would have to pay more to farmers to prevent them from selling abroad. Poultry meat prices in the Czech Republic are now 20 percent below the neighbouring markets.

Processors would be forced to pass the cost to consumers as many of them are already having problems and some have folded this year.

In mid July, retail prices of chickens have already risen 20 percent above prices in the first half of the year, from Kc 47 to Kc 56 per kg.