Auto Trader Ltd
Farminguk
01 May 2016 | Online since 2003
Less co2 Limited


29 August 2012 16:59:50|Cattle,Finance,News,Pigs,Sheep

Price volatility is not going away, livestock farmers warned


Livestock and dairy farmers have been warned to keep a close eye on the costs of production as input price volatility is 'here for the foreseeable future', the warning comes as Livestock 2012 is due to begin in September.
Speaking ahead of the 2012 Livestock Event at Birmingham’s NEC, Wilkinson said that whilst market forces were keeping beef prices attractive for farmers, input costs were likely to rise due to currency movements and increasing grain-based livestock feed prices caused by the US and Russian droughts. This is in stark contrast to the very wet and cool summer which the UK is still enduring.
In the UK, feed wheat was being priced up to £230 per tonne in July, compared to £182 per tonne the year previously. Meanwhile, currency fluctuations are diminishing returns for exported UK beef to Europe.
“Generally stagnant or declining EU cattle numbers, reduced supplies from South America and a very significant increase in EU beef exports have created a strong demand for UK beef within the UK" Wilkinson said.
"These market dynamics are keeping beef prices high which is very pleasing for farmers. That said, input costs are rising and livestock farmers must keep an eye on their own specific costs to ensure they don’t significantly erode existing margins.
“The main concerns for beef and sheep producers are primarily rising input costs, mainly feed, fertiliser and bedding straw. Concerns over CAP Reform have been placed on the back burner for the time being. While our whole farm budgets suggest some narrowing of the deficit between cost of production and sale prices, the vast majority of farmers continue to rely heavily on support payments for any level of profitability.”
Wilkinson added that communication needs to improve throughout the food chain to ensure all parties understand the needs of others. Farmers, processors and food retailers need to adopt an open dialogue to help avoid issues such as the recent blockades of milk distribution depots by farmers angry at the cut in milk prices.
“We need a proper functioning market across all sectors of farming and in order to achieve that we need better lines of communication. The recent milk situation demonstrated that the communication line throughout the chain needs improving, which leads to misunderstanding" he said.

Download





0 Comment


Name

Please enter your name


Email

Comment

Please enter your comment


Post Comment

Your comment submitted successfully.Please wait for admin approval.


Comments

No comments posted yet. Be the first to post a comment

World News

United Kingdom | 29 April 2016
Banned pesticides 'not equally harmful' to bees

The largest field study so far in to the group of pesticides called "neonicotinoids" has concluded that each acts differently on the brains of the bees. One of the chemicals widely considered as be...


Canada | 29 April 2016
Competing ethical meat standards leave Alberta beef farmers in crossfire

Colleen Biggs and her husband, Dylan, own an award-winning livestock operation in Alberta. TK Ranch produces beef without antibiotics, drugs, added hormones, animal by-products and chemical insecticid...


India | 29 April 2016
Govt plans to use quarter of farmland for horticulture

In a bid to gain from Haryana's close proximity to the national capital, the state government has planned to use major chunks of agriculture land for horticulture in the state. The state governmen...


Austria | 29 April 2016
Negative effect on Austrian agriculture

The trade agreement between the US and Europe, TTIP, will have negative effects on employment and the biggest losses in jobs will be in the agricultural and food producing sectors. This is one of ...


New Zealand | 29 April 2016
Suicide concerns rise for farmers as dairy downturn takes its toll

A rise in substance abuse and domestic violence in Golden Bay's rural community raises concerns over suicide as the dairy downturn continues to bite, mental health workers say. Community Mental Hea...



Trending Now

Viewed
Discussed

Farms and Land for sale


Holiday Rentals search



Top stories you may have missed
Username
Password