Allister raises rising feed costs with Commission
11 September 2007
Jim Allister MEP has written to Agriculture Commissioner Fischer Boel, highlighting the crisis faced by the intensive sectors in light of soaring grain costs.
The letter reads as follows:
Ref. JA/TK/EUCor/3132
Mariann Fischer Boel
Commissioner for Agriculture and Rural Development
EU Commission
Rue Wiertz
B-1049
BRUSSELS
Belgium
11 September 2007
Dear Mariann,
Re. Feed Prices
I am gravely concerned at the future viability of European pig and poultry production as a result of the phenomenon of soaring feed costs. You will be aware of the enormous pressure the significant upturn in World grain prices is having particularly on the intensive sectors throughout Europe.
My concerns do not solely lie with the upturn in one sector at the expense of another, but in the inability of producers to retrieve increased costs from the supply chain.
In Northern Ireland, feed costs for pig producers have increased on average by £60 per ton, taken across the spectrum of wheat, maize, barley and soya in the past year alone. Indeed, wheat costs have soared by 148% since August 2006 to over £200 per ton, yet farmgate prices have remained virtually static.
It has been estimated that pig producers would require an extra 26 pence per kg just to keep pace with rising feed costs. Average pigmeat prices remain around mid-90’s (Pence).
I believe this episode clearly illustrates the strangling effect the supply chain is having on the lifeblood of European Agriculture. Particularly in the United Kingdom, large supermarket cartels show little commitment to local produce, in part due to the availability of cheaper product produced to lesser standards been seen to be comparable product. That is why effective labelling is required to illustrate clearly the differences in production standards between Quality Assured EU product, and non-EU product. I would be interested to know how you intend to progress this issue.
In addition, the current imbalance of power within the supply chain lies heavily in favour of supermarkets. Commissioner, are you committed to redressing these imbalances more in favour of producers, and how do you propose to do this?
Do you recognise that the cheap food policy is over, in recognition of high global demand for grain to meet not only food, but also our energy requirements, and to meet the rising demand from China and India? How do you propose to address this issue?
I would also ask, what efforts are being made by the Commission to give immediate financial relief to those sectors worst effected by the current feed crisis? I would ask you to consider making a financial package available to give some relief to the pig and poultry sectors, to be prioritised for those regions which have low a low arable base by way of shelter, and thus an over-reliance on imported grains. This is the situation in my Northern Ireland constituency.
Finally, what efforts are being made by the Commission to speed up the approval of GM varieties of Maize and soya for feed use in the EU? Asynchronous approvals of new GM varieties, lengthy delays, and a zero tolerance approach to non-approved varieties is resulting in the effective closure of traditional supplies of Maize and Soya by-products. This is simply adding to the pressure on feed prices.
How can it be that one Maize variety, GA21 is approved for human consumption, but cannot be fed to animals, such is the situation at present.
Commissioner, direct intervention by the Commission, through immediate financial relief, as well as other medium and longer term measures on behalf of the intensive sectors is a matter of absolute urgency, to avoid EU pig and poultry production being decimated.
I appeal for your most urgent assistance on this matter, and I await your response.
Yours sincerely,
Jim Allister QC MEP
