October 30, 2007

Ridley Corp warns of tough times for Australian farmers

Australian feed company Ridley Corp has warned that the outlook for farmers around the country is grim as they face their second spring with no rain.

Ridley's chairman, John Keniry, said that high feed prices, grain shortages and the complications and risks involved with having to import feed grain could become a fact of life for the foreseeable future.

Keniry said that grain prices remained volatile due to drought induced supply constraints and rising demand from Asian economies.

Biofuel development, particularly in the US and Europe, continue to draw grain supplies away from the feed industry, he noted.