The cost of producing poultry is likely to rise in response to disruption to the trade in key commodities used in animal feed, following the invasion of Ukraine by Russia.
Russia and Ukraine grow nearly a quarter of the world’s wheat, and global markets rose sharply yesterday in response to the invasion. According to figures from AHBD, UK feed wheat futures for May-22 rose £7.25/t yesterday to £235.25/t. The Nov-22 contract gained £7.85/t to a new high of £216.15/t.
The poultry sector is already facing record feed prices, with egg producers dealing with feed costs up more than £1 per hen over the past year, according to Robert Gooch, chief executive of the British Free Range Producers Association (BFREPA).
Fuel and energy costs are also going to rise, with oil prices have surging past $100 (£74) a barrel to a seven-year high, AHDB said.