August 16, 2007

High grain costs should also hike British meat, dairy prices

A British industry group has urged UK supermarkets to recognise the need for higher milk, pig and poultry meat prices over soaring feed grain costs.

Tony Bell, of the Agricultural Industries Confederation (AIC), an umbrella group for the agricultural supply industries said livestock farmers need price increases for their products as a massive exodus from the business is impending.

European grain prices have soared 70 percent since April on fears over this summer's harvest at a time of tight global supplies and low stock levels.

Bell added wheat prices this year has doubled, now pegged at 75 pounds a tonne from year ago.

Livestock farmers across Europe are caught between higher input costs and powerful supermarket chains that try to keep costs down for the consumer.

French chicken farmer DUC said this week it planned to raise prices from whole birds to frozen parts from September due to the soaring grain price.

Wholesale buyers and distributors will pay between six and eight percent more in a move that could have an impact on consumers, said Joel Marchand, DUC's general manager.

DUC raised prices for its range of chicken products in the second quarter of the year by five percent due to higher costs for breeders, he said.