August 31, 2007

  

Doubling feed costs could cause meat shortfalls in Scotland

 

 

Soaring feed costs is creating a crisis for Scotland's livestock producers and could eventually lead to an eventual shortage, the National Farmers Union of Scotland (NFUS) said Thursday (August 30).

 

"Is it not an exaggeration to say the Scottish livestock industry is facing a meltdown," NFUS President Jim McLaren said.

 

"Supermarkets must understand that the same factors which have driven dairy farmers out of business and landed the country with a milk shortage are now hitting the whole livestock sector," he added.

 

In a statement NFUS said, "The crisis is particularly acute in the pigs and poultry industry with farmers facing a disastrous situation in the coming weeks."

 

Farmers are currently losing up to GBP13 (US$26.19) on every pig sold, according to the NFUS.

 

McLaren said it's a similar scenario for egg and chicken producers. "The (pig) and poultry sectors are staring into an abyss at present," said McLaren.

 

NFU Scotland said it is conducting urgent talks with the major retailers.

 

European wheat and corn futures traded on the Liffe exchanged soared to record highs Thursday, due to historically tight global and domestic supplies.

 

Wheat used for animal feed is up 113 percent on the year at around GBP170 per tonne, according to the NFUS.

 

"This unprecedented rise in costs has led farmers to question their future," said McLaren. "I believe it could spell the end of guaranteed supplies of Scottish meat and meat products on supermarket shelves."

 

Following a small crop last year, wheat production in the European Union was expected to be up on the year. However, following adverse weather conditions, the crop is now estimated to be below last year's harvest.

 

McLaren said due to high-mark up by retailers, a 25 percent increase in the pig farm gate price would only equate to about GBP0.04 a packet of ham or GBP0.10 on a packet of bacon.

 

In other markets, the doubling of wheat adds GBP0.08 to the price of a loaf of bread, NFUS said.

 

1 British pound (GBP) = US$2.01 As of August 31, 2007