May 1, 2007

 

Rising organic meat production in UK raises organic feed demand

 

 

The fast-increasing number of organic farms in the UK has led to a shortage of organic feed ingredients.

 

As the growth of organic livestock farms has outpaced organic arable production, the former has had to rely on imports to feed its animals.

 

Drought conditions in parts of the country has worsened the shortage of forage now affecting organic dairy farms.

 

Despite record high prices, UK demand for organic feed, especially organic poultry feed, is growing, according to organic feed producers.

 

Europe's poor grain harvest last summer, together with stricter EU standards, have raised prices to new highs.

 

Higher organic content mandated by the EU for animal feed is also not helping matters. The EU requires the organic content of animal feed to increase from 80 to 85 percent, and 95 percent for organic ruminant feed.

 

The biggest demand for organic feed is from poultry producers as organic chickens and turkey find favour with consumers. However, organic feed sales to farms producing other organic meats are fast growing too, feed millers said.

 

In the US, the organic industry overall is growing at the rate of 15-20 percent  per year, according to Simmons Grain Company in Salem, Ohio, as livestock producers are becoming increasingly aware of the benefits of organic production.

 

As the rising demand for organic meat prompts price increases, prices for organic feeds are rising as well.

 

Food-grade organic soy can fetch US$18-20 per bushel (US660-735 per tonne) in the US and Canada.