News update:Jan 30, 2007

Increasing corn cost affects US chicken and egg prices

"Costs have probably gone up about US$0.25 per dozen just recently," said Dave Neff, a Morris Hatchery Inc. director. "[Customers] have accepted it."

Florida-based Morris Hatchery sells most of its eggs overseas and demand in Europe has increased. Apparently, buying the higher-priced eggs is cheaper than importing the expensive corn to feed the laying hens, suspects Neff, who was staffing Morris' booth at the International Poultry Expo.
Corn, an important feed, is now trading at more than $4 per bushel at the Chicago Board of Trade, the highest in 10 years. The increase is largely because producers of ethanol, the biofuel made from grain, are consuming more and more corn.
US consumers can expect to pay higher prices for chicken if corn prices remain high, because chicken producers will have to pass on their costs, said an economist.

Editor WorldPoultry

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