High grain prices affect organic food in UK

According to the UK Soil Association, the main organic
certification farming body, organic pig and poultry farmers are struggling to
feed their livestock because prices are so high. Farmers are also fearful that
supermarkets will be reluctant to pass on the increase to
consumers.

Organic sales saw a 22% increase on the 2006 figures, but
organic producers believe that growth in sales of organic food is unlikely to be
sustained at last year’s levels. This is because not enough organic grain is
being produced in Britain.

State of flux
Helen Browning, the
Association’s director of food and farming: “We are in a state of real flux.
Prices will need to go up across the board. And we are very nervous about the
pig and poultry sector.” According to Browning, the factors which have caused a
rise in conventional grain prices – low harvests in many regions of the world,
bad weather in Europe and growing demand from east Asia – have been
compounded for organic farmers by a shortage of arable land in organic
production.

Organic grain prices are some of the highest in Europe. It is
expected that the high prices will be felt most immediately in the pig and
poultry sector, which are most dependent on cereal-based feeds.

The price
of organic oats reached up to £268 (€397) per ton last week and feed wheat £240
(€356), compared with £215 (€319) earlier this summer. Conventional wheat has
gone up even more, from £90 (€13) to £145 (€215).

Related
website:
Soil
Association