By Tom Woolman, poultry industry consultant
There was much in the press last month about farmer confidence being at record low levels. The factors won’t come as a surprise to anyone: extreme weather, volatile input prices and the phasing out of BPS payments all contributing points.
Now a month can be a long time in poultry; it can technically be a lifetime if you thin broilers between 28 and 31 days. But these media reports weren’t exactly chiming with the buoyant mood that I felt at the Pig and Poultry fair last month. I mean, even ForFarmers were exhibiting again!
A new sort of space race is underway, with the supermarkets creating a double constraint on supply. They have their upcoming cage egg ban and an increasing number are getting behind the new 30kg stocking density for broilers.
Meat processors need to find more floorspace to meet their customer requirements. Liveweight prices are already going up accordingly. More houses will need to be built as farms first downstock and then reinvest to get back up to their permit number. Good news for shed builders and associated suppliers.
Smaller processors have remained much more profitable over the past year compared to the bigger boys. Expect this trend to continue as they find themselves able to react quickly to the changing commercial environment.
For egg producers who have stuck out the past three years there is something of an extended honeymoon. Avian influenza has all but disappeared (who wants to pay for vaccination now?) and margins remain strong.
The demand for barn eggs is creating a rare convergence for the egg and meat sector, with suitable housing going to the highest bidder. I heard a comment directed at one farmer on a stand: “You’ve never had it so good, have you?”
And let’s not talk about renewables shall we. The industry has well and truly got its foot in the door here and they have underpinned farm incomes for specific businesses significantly over the past decade.
But I’m sure that won’t stop people complaining about the cost of parking at the NEC, will it?