Chickens Can No Longer Afford to Eat Corn

Posted on March 23, 2008. Filed under: Uncategorized |

For consumers, retail prices for broiler products is up 10% over the last year.  For a company whose revenue in 2007 was $7.6 billion, a rise in costs of $1.3 billion ain’t chicken feed.

Bloomberg news reports:

“Our company and industry are struggling to cope with unprecedented increases in feed-ingredient costs this year due largely to the U.S. government’s ill-advised policy of providing generous federal subsidies to corn-based ethanol blenders,” Chief Executive Officer J. Clint Rivers said in the statement.

The price of soybean meal in Chicago rose to $392.90 per 2,000 pounds, the highest since 1973, on March 3 and has gained more than 50 percent in the past year.

“Based on current commodity futures markets, our company’s total costs for corn and soybean meal to feed our flocks in fiscal 2008 would be more than $1.3 billion higher than what they were two years ago,” Rivers said.

 

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