Get your share of poultry profits
By Poultry World staff
EGG and chicken producers are being ripped off by retailers – and should fight for their share of the profits.
A survey by agents Knight Frank shows that poultry products – in the same way as lamb and beef – have suffered a sharp decline in farmgate prices, not reflected in shop prices.
Official MAFF data brought together in the survey show that, while farmgate prices have plummeted by an average of 35% between September 1996 and September 1998, retail prices have only fallen by an average of 5%.
When questioned about this, retailers highlight the livestock industry, for example stating that in the wake of the BSE crisis higher disposal and inspection costs had placed considerable pressure on the price of meat, the survey found.
“However, the figures show it is obvious that the extra costs are pushed back to the farmers rather than evenly spread over the industry,” says the report.
“Retailers currently quote the demand for quality from the consumer as the main reason for high shelf prices, but it is apparent that the consumer still continues to buy cheaper, non-traceable foreign imports,” claims Knight Frank.
It concludes that farmers should press even harder for a fairer share of the “large profits” that are currently being made in the food industry.