Norway: The poultry farmer must be compensated

Published Jan 7, 2022

Tridge summary

Norwegian poultry farmers are facing significant financial challenges due to the combined impact of the coronavirus pandemic and soaring energy and feed prices. The surge in concentrate feed prices, which have increased by around 30 øre per kilo since 2019, has led to substantial additional costs for farmers, with the exact figure depending on their specific production. The situation has worsened with the recent spike in energy prices, leading to an estimated annual increase in chicken production costs of approximately 100,000 kroner per farmer. At the moment, there are no signs of compensation for these increased energy costs, either from the market or the government. The Norwegian Poultry Association is calling for market regulators to adjust wholesale prices promptly to mitigate the financial strain on farmers, as the current producer prices were set in September 2021, predating the significant rise in feed and energy costs.

Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

In Nettavisen on 28 December, we could read about chicken producers who are despairing over today's sky-high energy prices. We who represent the poultry farmers want an understanding that cost growth is a significant threat if we are to continue to produce top quality egg and poultry meat for the Norwegian people. When the corona pandemic hit the world, poultry farmers quickly noticed the effect of abnormally high commodity prices on the world market. The customs protection has been put out of play on a number of feed raw materials and these costs are now directly affecting the bottom line of the poultry farmer. The concentrate feed price is currently approaching 30 øre more per kilo of feed compared with the feed price in 2019. The increased feed prices result in an annual additional cost of more than NOK 100,000 for farmers with table eggs, more than NOK 200,000 for farmers with broilers, NOK 270,000 for farmers with turkey and NOK 60,000 for farmers with duck production. At the ...

Source: Bondebladet