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80% rise in grain costs expected to force up NZ chicken prices

Published on 2 November, 2006, Last updated at 11:27 GMT


The Poultry Industry Association says a dramatic increase in the price of grain imported from Australia, will impact heavily on New Zealand chicken producers and prices.

Wheat, barley, maize and sorghum make up 65% of chicken feed; and producers rely on imported grain from Australia for their feed mix.

Association Executive director Michael Brooks says Australia's worst drought for decades, has forced grain prices up by more than 80%.

He says feed makes up more than 60% of chicken producers' production costs; so the rise in the price of imported grain will increase prices for whole chicken and processed products.


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