Movement ban costs put at 200m

By FWi staff

ANIMALS remaining on farm due to the foot-and-mouth crisis are costing farmers an extra 1 million a week in feed and bedding.

ADAS rural economist Bill Hall says this additional expense is cumulative, so by the end of the second week it will have cost 3m.

“This will be felt most on pig units and those finishing cattle with the additional risk of falling returns, particularly for pigs, as animals exceed weight or carcass spec.”

But Mr Halls major concern is that producers unable to sell stock as normal will see their cashflow deteriorate rapidly.

He estimates the cash value of lost sales at 50m in the first week of the movement ban.

“The time lag between selling stock and receiving cheques means the impact on cash flow will only start to be seen this week.

“But the seriousness in cash terms will escalate with up to 200m of cash not entering the industry this month.”

He advises affected producers to talk to bank managers to gain support through these difficulties.