September 6, 2007

UK's organic meat producers struggle with high grain prices
 

Rising grain prices is threatening to halt the breakneck pace of growth of the organic food sector in the UK.

According to the Soil Association, the main organic certification farming body, organic pig and poultry farmers are struggling to feed their livestock due to high grain prices.

Producers are also concerned whether supermarkets would give higher prices for their produce.

While organic sales grew 22 percent last year, this year's growth rate is expected to be tempered by higher grain prices.

Helen Browning, the Association's director of food and farming said the pig and poultry sector is getting jittery. 

On the supply side, along with the troubles that farmers of non-organic produce face such as bad harvests and droughts, organic farmers also have to deal with a shortage of arable land in organic production.

Organic grain prices are some of the highest in Europe.

Although the rise in prices of organic wheat is currently slower than that of conventional wheat, it still costs twice as much as the conventional version.

Meanwhile, UK media reports said that eggs from free-range chickens have outsold that of battery farmed birds for the first time in history,

Eggs from free-range chickens account for a little over half of all eggs sold in 2006 despite a 26 percent rise in prices.