Poultry industry defends import of grain

Mr Jeremy Talbot of South Canterbury growers says the industry only has itself to blame for being exposed to soaring imported grain prices.

He says more New Zealand farmers would still be growing grain if users such as poultry and stock feed companies and mills had paid farmers more reasonable prices in the past.

However, Poultry Industry Association executive director Michael Brooks says chicken producers have no choice but to get some of their feed requirements offshore.

The Association has warned of a hike in chicken prices, because of an 80 percent increase in Australian grain prices due to crops failing in the drought there.

Grains make up more than 60 percent of chicken feed and producers rely on imports, mainly from Australia, for their feed mix.

Mr Brooks concedes though that imported grains have helped poultry producers to keep prices down.

Australia reported recently that, if the drought continues, the prices of eggs and prices of chicken meat are likely to rise.