French poultry producers demand price increase

13-10-2010 | | |

Poultry producers in France refuse to be plucked. On Friday, they asked the large supermarkets to accept a 15% increase in prices of their products.

The price increase is a necessity. The producers argument: match the prices with the current high level of agricultural raw materials. These “grievances” marked the beginning of the trade negotiations with retailers to fix prices for 2011.

To support its claims, Christian Marinov, director of the French Confederation of poultry farming (CFA) would like to reiterate that since the end of June the cost of feed has increased by around 20%.

Major factors leading to such a situation: rising prices of wheat and soybeans. Marinov also states that feed represents between 65 and 70% of production costs of poultry. As a result, the cost to produce a chicken has increased by approximately 15%.

For several weeks producers have committed “actions” towards the mass distributers “to inform them of the need to take into account the increases in feed costs, but also other production costs,” CFA said in a statement. “Farmers are now demanding, as soon as possible, that their applications for revaluation are fully taken into account,” CFA insists.

The group Doux, Europe’s leading producer of poultry, has already estimated that the poultry prices in the global market should grow by 6% to 7% because of soaring international cereal prices, the base for poultry feed.

For their part, farmers’ organisations of turkeys (CIDEF), ducks (Cicar), guinea fowl (CIP) and broilers (CPIC) have also reacted. However conservative, they believe that the impact of the current increase in cereal prices affects consumers less than 1 € per month.

The groups insist that this increase “is done in a proportionate manner, without excessive margins on poultry products from the various stakeholders, including distributors, because it is important to avoid a drop in consumption.”

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