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on August 4, 2010

Jump in grain prices causes trouble for Denmark's pig farmers

Higher feed costs may total an additional $160 million in 2010

Danish pig farmers are struggling with a jump in grain prices, according to Bloomberg Businessweek.

Denmark is the world's largest pork exporter, with 27 million pigs raised in the country each year. Each pig is fed roughly 200 kilograms (440 pounds) of wheat and barley; feed accounts for two-thirds of production costs. "It's a chaotic situation as many pig farmers are already in debt," said Henrik Mortensen, chairman of the Danish Pig Producers group. "Meat prices will also go up, but there's always a delay of some months, which means that farmers have to rely on the mercy of their banks." Five thousand pig farmers are affected by the rise in prices.

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