December 12, 2008
Weak currency cushions British meat and animal feed prices
UK's meat sector and grain feed industry have benefited from a weak pound, cushioning it from lower prices.
The Bank of England made a third base rate cut causing the pound to hit an all-time low against the euro last week. At one point, the pound was valued at EUR1.14.
Further interest rate cuts are expected in the New Year, driving the pound lower.
Gleadell Agriculture managing director David Sheppard said if the pound has not dropped about 20 percent this year, then feed wheat would be worth about GBP60-70/tonne, compared with the current prices of GBP80-GBP90/tonne.
The meat sector has also gained from the currency weakness. AHDB Meat Services said that the value of beef exports over the first nine months of the year was up 55 percent hitting almost GBP150 million.
US$1=GBP0.6627 (Dec 12)