Home Business News Ukraine war is pushing the price of chicken feed to ‘record levels’ creating soaring egg prices leaving many farmers forced to quit

Ukraine war is pushing the price of chicken feed to ‘record levels’ creating soaring egg prices leaving many farmers forced to quit

by LLB Finance Reporter
12th May 22 2:04 pm

A key ingredient for chicken feed is pushing up the cost for farmers to “record levels” leaving many unable to meet production costs with few just about breaking even.

The managing director of Massey Feeds in Crewe who sells his livestock to more than 4,000 farms in the UK warned that wheat prices have skyrocketed by 60% since last year.

Kynan Massey told the Today Programme on Radio 4 that prices for the “raw materials” used in the chicken feed have been steadily increasing over the past two years, which is now spiralling out of control.

Massey said, “As we got into last Autumn and into February, we saw a 20% increase in the wheat price from the Autumn through to February and then very soon after, within weeks of the conflict, starting in the Ukraine we saw another 40% increase in the price of wheat in a very short space of time.

“We are seeing on our feed prices going up £100 a ton.

“It’s a massive amount. Try bearing in mind the prices at February were already near record prices.

“We’ve never seen prices this high prior to the Ukraine conflict starting.

“It’s important to remember all our raw materials are driven by world prices.

“We are driven by world trade so in these situations we try to look at the world market and see what drives prices higher and what might drive prices lower.

“The reason we have gone up so significantly in this period is Russia and Ukraine are between the biggest producers of wheat in the world but not only that they are responsible for a quarter of all exports around the world and throughout this period if the conflict continues we could continue to see the wheat prices increase.

“We are also seeing the actual crops are under stress in Europe from the weather. We need more rain so the dry weather is actually pushing prices up.

“So what could bring the prices down? The end to the conflict, good weather in Europe or a drop in demand for wheat.

“A lot of wheat goes into Ethanol, higher fuels. If that were to drop that would be another area which might see some pressure come off.”

He added, “Food security is a concern and it would be great if the retailers could offer more support to the farmers.”

Supermarkets have been accused of suffocating “businesses” and putting “cheap food marketing tactics” above the needs of farmers.

Egg farmers have now threatened to stop all production if supermarkets do not increase their egg prices amid soaring energy and feed costs.

The British Free Range Egg Producers Association (BFREPA) have warned that the cost of feeding hens has jumped by 50%, as energy prices have increased by 40%, and fuel costs have risen by 30% and companies are also paying more for labour and packaging.

BFREPA has asked Tesco, Asda, Morrisons, Sainsbury’s, Aldi, Lidl, Marks and Spencer, and Waitrose for them to help egg farmers by raising prices, but there has been no success.

The industry body warned that 51% of farmers are now “seriously considering stopping production” as the price of eggs in supermarkets are now below the level where they can break even, and they are asking for a 40p increase for a dozen of eggs.

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