Chicken farming ‘under threat’
Poultry Committee Chairman Alan Graham said Irish chicken production at farm level is at the crossroads. Chicken farmers cannot stay in the production business at the current level of margin which ranges from 30c per bird to 38c per bird.
“Production costs including labour and capital repayments run to approximately 40c per bird and this level of margin is needed if the business is to be sustained,” he said.
“As it stands at the present time farmers are subsidising chicken production discounting their own labour and forgetting about capital repayments and depreciation. This cannot continue.”
Mr Graham said farmers receive a margin from the processor over feed, chick and catching which is meant to clear variable costs, labour and charges.
The present general margin of 30c per bird is 10c per bird short of real cost breakeven. If this gap is not bridged production units will be run down, farmers will leave the business and fresh Irish chicken will become scarce.
“Farmers have received no margin increase over the past two to three years and many costs have risen in the meantime.
Mr Graham said a Bord Bia chicken quality assurance scheme has also been introduced over this period at further expense to farmers.
“Retailers have a role to play to sustain Irish chicken production. Below cost selling which is often a feature of the retail trade is very damaging and undermines the value and image of Irish chicken.”
