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IPC concerned about increasing feed prices

The International Poultry Council (IPC) is concerned that the global feed grain shortage is increasing the retail price of poultry, and are calling for governments to intervene in preventing further increases in price.

The International Poultry Council (IPC) 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 US 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 percent of the world’s supply of food animal feedstuffs.

Given these circumstances, it is the view of the IPC that:

The 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.

Accordingly, governments should take whatever measures are available to prevent any further increases in grain prices. Poultry meat has historically been the world’s cheapest large-scale source of animal protein, and has played a central role in providing consumers in poorer nations with access to protein. Continued high grain prices threaten food security, especially in low-income countries.

Furthermore, authorities should discourage financial speculation involving feed grain prices. Such speculation by entities not directly tied to the food-producing sector has generated even stronger price volatility in the feed sector. Derivative markets should not be used to speculate financially for such an important commodity as food.

Governmental policies that subsidise or encourage the production of renewable fuels from grains and cereals should be revised in order to avoid the risk of food shortages.

The IPC is a non-governmental organization comprised of trade associations and other entities that represent more than 90 percent of the world’s commercial poultry meat production.

Source: IPC

Editor WorldPoultry


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    dilip upadhye

    In India the farmers cannot pass on the increased production to the costumers, how can they remain financially solvent? every farmer should think of getting out of this business in time.

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    Every one who are engaged in poultry production is concerned about the increase in the cost of feed which has a direct effect on poultry meat and eggs and other forms of meat like pork. A country like Malaysia depends on 70-80% of imported feed ingredients like corn and soyabean meal and other ingredients like MBM, CGM etc which are the common ingredients used in feed formulation. The fat sources like palm oil has also increase in price up to a level of $1000 and more. The industry is coping up with the situation by increasing the price of feed from time to time.Of course most feed millers have gone into integration and it is the smaller ones who have no integration suffers. The integrators if they lose at one end makes at the other end without much losses.Moreover grains like corn and veg proteins like SBM are purchased in bulk by the feed millers through the traders from Brazil and Argentina and this helps to lower cost slightly as they are brought in by Panmax vessels and freight charges are less. In any case the cost of feed is high. The local raw materials are also high in price as traders take advantage of the situation and raise the prices.Some feed millers with high storage faclities buy more and stock the grains after treating it. The goverment keeps a close watch on the pricing of feed and chickens during the festive seasons by having a list of items under control. At the same time there is also a competition act which has been passed in parliament. In any case the feed millers still try their best to maintain quality as they are controlled by the feed act also.Some feed millers are stringent and try to cut down on production and strict on terms and conditions of sales. I know in some areas of south asia smaller ones have temporarily shut down. We cannot depend on grains all the time and we have to look into alternate sources that are available in every country and also adopt to new technologies in using these products that are available.The drought season is expected to continue and we have to face the consequences and start working on alternative items and not only look for solutions when problems comes in.We have to look at problems ahead all the time. Feed millers do try their best to accomdate farmers in all situations. In countries which depend on imported grains and veg proteins have to do more research from time and should be continious in all efforts to help the farming community.
    Every country should adopt a system of reducing the intake of chicken meat and eggs and go for more sea food, and vegetables as an alternative until situation improves. Nutritionist in all feed mills should play a major role to find ways and means of using alternative products at their own initiatives rather than being told.

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