August 20, 2007

EU livestock farmers should ask for higher prices to cover grain costs

EU farmers should be paid more to cover their increasing feed costs this autumn, the Agricultural Industries Confederation has warned.

Tony Bell, who is chairman of feed executive committee in the Conferation, said wheat and barley prices had doubled this year, which pushed up feed prices.

Supermarkets would have to realise that livestock farmers would be in serious trouble if they do not raise meat and milk prices.

Drought last year and heavy rains this year have acted to reduce crop production, thus prompting a sharp increase in wheat and barley prices.

The shortage is exacerbated by the fast-rising ethanol industry, which uses grains as a raw ingredient.

Current developments are serious threats to the animal feed and livestock production sectors, Bell said, adding that he hopes supermarkets would pay market prices reflecting increased costs.