News update:Feb 3, 2010

Australian poultry prices expected to rise

The price of chicken meat in Australia is expected to rise as drought results in an increase in the price of grain - a significant production cost for the country's chicken farmers.

The Australian Chicken Meat Federation made a statement this week warning the Australian poultry industry  that grain prices have increased by 80% in the past year. Grain, for which there is no substitute, is the main constituent of chicken feed, making up 60% of production costs.
"The two predominant grains in chicken feed , wheat and sorghum, account for approximately 65% of the feed, with corn, barley, oats, proteins and vitamins making up the balance. With the unprecedented rise in the cost of grain, chicken producers are experiencing a substantial increase in production costs," said executive director Dr Andreas Dubs.

The price of chicken meat has progressively decreased over the past 40 years. The drought , however, has caused the prices to rise, due to the effect of the drought pushing global wheat prices up to a 10 year high, as well as international grain prices, imports will also be discouraged.

For related websites or more information:

Australian Bureau of Agricultural and Resource Economics

The Cooperative Research Centre (CRC) for the Australian Poultry Industries

Australian Chicken Meat Federation

For the latest poultry news, subscribe here

Editor WorldPoultry

Or register to be able to comment.