Milk price threatens more than just farmers, says AIC

The current lack of profitability in the dairy and pig sectors threatens more than just farmers, according to the Agricultural Industries Confederation which represents the UK’s animal feed sector.

In recent months, prices of raw ingredients for feed producers have soared due to shifts in world markets.

The London futures price for November wheat has increased by over £40 per tonne whilst the Chicago soya price for September has increased by more than £80 per tonne. At the same time haulage and fuel costs continue to rise inexorably.

“Feed producers find themselves between a rock and hard place,” says AIC Chief Executive David Caffall.

“On the one hand costs beyond their control are rising; while on the other hand their farmer customers are receiving inadequate returns for their produce.”

“We estimate that AIC feed members directly employ around 7,500 people and indirectly contributes to many other industry sectors and local economies,” said Caffall.

The declared aim of AIC is to work in ‘support of a modern, sustainable agricultural industry’.

“We believe that sustainability requires a fair return for everyone involved along the chain from ingredient supplier, through feed producer and distributor to the farm and on to the retail shelf. There must be equitable returns at every step if we are to achieve a truly sustainable industry capable of delivering quality food to a growing population” said Caffall.