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News and analysis on the global poultry
and animal feed industries.
Broilers & Layers / Egg Production
on January 30, 2012

UK broiler, egg producers to see 2012 margins decline

Sector again affected by rising input costs

The average income on UK specialist poultry farms is expected to fall by some 8 percent in 2012, according to figures from the country’s government.

Although the value of output from the egg and broiler sectors is expected to increase, this will be offset by the increased cost of production, particularly the cost of feed. The forecasts and farm income data for 2010 and 2011, published by the Department for Environment, Food and Rural Affairs, suggest a strong 2012 for the UK farming industry as a whole, with dairy farmers seeing an increase in income of 27 percent.

“These forecasts are in contrast to the wider economy," said National Farmers' Union chief economist Phil Blicknell. "They follow on from the improved confidence that we’ve seen in some farming sectors and build on other recent indicators that have underlined agriculture’s contribution to the wider economy. This is undoubtedly positive news for parts of the industry.

But not all farm types saw improvements to their bottom line, according to Blicknell. Pigs and poultry saw profitability decline, as rising input costs, most notably feed, made inroads into enterprise margins.

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