Pressure on UK pig feed prices
With feed prices rising, pig meat producers in the UK
coming off contracts could be facing, on average, an extra Â£12 a metric ton to
This equates to as much as 4p per kg deadweight according to a feed cost
report just published by the British Pig Executive (BPEX).
BPEX said there is a whole range of factors driving the price increases
for cereals, including the drought affecting EU production, low cereal stock
levels, fears about new importers and the rise in interest in biofuels.
Competition of biofuels
In the UK, for example, a
biofuel plant is under construction which will take 750,000 metric tons of wheat
a year. Report author Tony Fowler, BPEX Senior Economic Analyst, said: "Biofuels
are being promoted by governments around the world as a sustainable energy
source. The downside of this is that as they compete with animals and humans
for feed, prices will be driven up."
Further rise in prices
Prices are set to show some
further rises through the remainder of the current season, which will push up
pig production costs. "But more plentiful EU supplies combined with adequate
sources in the Ukraine and North America and lower soya prices should mean that
prices are unlikely to approach the high levels of 2003/04," said BPEX KT
Manager Richard Bull. "However continuing uncertainty over the southern
hemisphere harvests is likely to lead to some volatility in cereal prices over
the next few months," according to Bull.
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