The US Department of Agriculture has revealed that the overall price of crops and livestock has risen 16% over last year’s level due to the rising cost of fuel, feed and fertiliser.
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According to an annual report published yesterday (31 July) by the USDA, the prices of corn and soybeans have risen to record highs, while grain prices are up 42% for the year to date.
The report, which measures the price farmers receive for goods, found that in June the price of farm products increased 1.9% and grain was up 1.6%. Livestock price increases were under 1%.
With the increase in the cost of grains outpacing increases in the price of meat, US meat firms have been faced with plummeting margins.
“One of the main drivers for the escalating price of corn is demand from the biofuels industry,” a spokesperson for the National Chicken Council told just-food. “This is having a really tremendous impact on the cost of animal feed and putting meat processors under a huge amount of pressure.”
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By GlobalDataThe NCC and other food industry bodies, such as the Grocery Manufacturers Association, have been vocal critics of the Bush administration’s biofuels targets.
