WorldPoultry: German egg producers: prices must rise because of drought

Escalating feed costs due to the drought affecting much of Europe has prompted German egg producers to call on supermarkets for price rises.

Germany’s wheat crop is expected to be 25% lower than last year, which is set to push cereal feed prices higher.

Producer association ZDG said: “The significant rise in animal feed prices in past weeks has brought German poultry farmers into great difficulty.”

“Prices for wheat, a central component of chicken and turkey feed, is currently about 25% over last year’s level, with a rising trend,” it added.

Consumers should pay more for poultry meat
“We call on the food retailer sector to increase their purchase price. And consumers should be willing to pay more for poultry meat.”

Germany, with its giant discount supermarkets, traditionally offers very low prices due to its powerful hold on the retail market.

Poor grain harvest
Reuters reported on Friday that grain analysts were now suggesting the harvest across northern Europe would be a poor one due to the weather. Strategic Grain head analyst Andree Defois told the agency: “The situation is catastrophic in northern Europe.” It cut its forecast for this year’s soft wheat harvest in the EU below 130m tonnes – which represents a six year low.

Less grain in Sweden and France
Analysts added that France was likely to see 2.6m tonnes fewer harvested compared to last year, while Sweden’s wheat crop falling 40%. UK harvest predictions suggest the lowest for the past five years.