October 30, 2007

Rising feed prices to force chicken prices up 30 percent in Australia

Rising feed prices would force chicken meat prices to rise 20-30 percent from November, the Australian Chicken Meat Federation said.

Feed-grain prices have doubled in the past year. The increase, coupled with rising fuel costs makes the increase inevitable, the group said.

Feed makes up approximately 60 percent of the cost of producing chicken meat.

With costs rising from the unprecedented rise in grain prices, worsened by the higher costs of fuel, chicken producers are finally being forced to pass on these costs to the consumer, said executive director Andreas Dubs.

The price rise is expected to kick in by mid-November and will affect all chicken products, from whole chickens to processed meats.