International Poultry Group Warns of Higher Prices, Feed Shortages

By CnAgri2012-08-16 19:45:32 Print

The International Poultry Council is concerned that the current world grain shortage caused by prolonged drought situation in the soybean and corn producing regions in the United States, coupled with excessive rains in Northern Europe, is having a significant impact on poultry meat production worldwide.

Global commercial poultry production depends on feeds produced from corn, soy and other grains, all of which are important inputs. Because of the U.S. drought, global corn and soybean supplies are insufficient.

Meanwhile, financial speculation has worsened the situation, sending corn and soy prices to record levels, as well as driving up the price of alternative feed crops, such as wheat. Moreover, poultry production consumes 44 per cent of the world's supply of food animal feedstuffs.

The IPC says high prices of feed grains are pushing up the cost of producing commercial poultry. Poultry price increases are inevitable, which companies are forced to pass on to consumers to remain financially solvent. Further increases in the cost of grain will assuredly lead to additional cuts in production.