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Long Term Drought Impacts Chicken Meat Industry

The reality of the drought being felt by farming communities across rural Australia also has a severe effect on the chicken meat industry through its impact on grain prices, a major production cost for the chicken meat industry.

Grain prices have increased by 80% over the past year, and grain represents the major part of chicken feed, for which there is no substitute. Feed in turn makes up more than 60% of the production costs. So it is easy to see why the drought impacts the chicken meat industry in a major way.

Dr Andreas Dubs, Executive Director of the Australian Chicken Meat Federation, said “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.”

The industry is committed to supporting and protecting the interests of its farmers and finding new ways to improve efficiencies and pass on cost savings to consumers.
“The facts speak for themselves: the price (adjusted for inflation) of chicken meat has decreased steadily over the past 40 years while other meats have become more expensive”, Dr Dubs states. “However the current drought is putting extreme pressure on the industry which can be expected to result in significant price increases for chicken meat, from whole chickens right through to further processed products.”
Date : 24/10/2006 Effect of Drought on Chicken Meat Industry.pdf (38 KB)

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