Livestock producers worst hit by rising input costs

The latest AgInflation Index from Anglia Farmers confirms that livestock producers are feeling the brunt of rising input costs, with dairy worst hit.

The annual results show input costs for all farmers and growers are up by 3.38% with deflation in fuel and fertiliser costs masking the significant rise in other costs; rents, rates and finance are up 12.6% and animal feed and medicine costs have risen by 10.8%.

“There is a stark contrast between corn and horn this year. Beef, lamb and dairy costs have increased markedly, while cereals and rape have benefitted from lower fuel and fertiliser costs,” said former AF director, who developed the AF AgInflation Index, Jim Alston.

“Dairy now shows the greatest disparity between the rising cost of production and the very limited rise in liquid milk retail price.

“Potatoes are also coming under increased pressure as costs have risen by almost 5%, though in this case the retail price indicates that there should be enough margin in the system to adequately compensate growers.”

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