Fair price needed for poultry industry, says NFU

The NFU is calling for poultry famers to be given a price that covers their increasing costs of production with soaring feed prices leaving some producers making a loss.

Despite recent work to strengthen relationships between British poultry producers and retailers the NFU believes recent inflation in feed prices needs to be reflected in price paid back to the farmer.

NFU poultry board chairman Charles Bourns said: Retailers look to farmers to invest in ever-improving, often dedicated supply chains, but this deal comes with some responsibility for them to ensure their suppliers are making a fair margin.

British farmers are a trusted supplier of poultry meat and eggs which meet the high standards that customers expect. However more and more producers are required to meet bespoke retail standards. These could include things like additional windows, perches in sheds, woodland for birds to range or independent food health and safety audits. With rising costs and now soaring feed prices, this means some producers are making a loss.

The effect of feed price inflation is clear for all to see. Latest NFU figures suggest that feed is costing farmers an extra 5p per dozen eggs, and over 12p per chicken. And these are just direct costs; there is also the effect of these costs long-term on the breeding flocks.

Farmers remain committed to the retail partnership, as ultimately this is their route to a long-term relationship with the consumer but this is a crunch time for them. This isnt rocket science farmers just need a fair price that covers their cost of production.

• NFU poultry board chairman Charles Bourns wrote to all major retailers at the beginning of November to highlight the affect of feed inflation on farmers’ margins
• Approximately 60-70 per cent of costs of poultry production is feed cost
• An average 60 per cent poultry ration is wheat, which has risen 50 per tonne in recent months