Tesco to increase price for meat producers

This announcement comes shortly after the National Farmers Union (NFU) and
National Pig Association (NPA) held a national launch to raise awareness of
impending crisis within the industry.

Feeds costs that producers are
being forces to pay have seen massive increases, resulting in producers seeing
more than half of their production costs going to feed.

NFU poultry board
chairman Charles Bourns: “This news comes at a critical time for UK poultry
producers. Our findings highlight that feed costs have risen by 25% in the last
12 months – from £140/tonne in August 2006 to £180/tonne this August, and still
rising…

Cost increases like these simply cannot be absorbed by producers
which is why we commend Tesco for reacting to these supply chain pressures so
swiftly.”