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High feed prices have meant chicken production has dropped 5percentt, according to the National Chicken Council.
The reduction in imports has brought some short-term relief to American hog farmers suffering from high feed prices and low domestic and export sales.
"You probably can't print our mood," said Dallis Basel, a sheep rancher in western South Dakota who sold off half of his herd because of the high feed prices caused by the drought.
While hog and pork prices have rebounded, industry analysts were unconvinced that consumers had overcome their economic jitters, and warned that a slowing economy would leave Smithfield with high feed prices but a diminished ability to cover those costs.
"And now, everyone is uncertain — if they grow fish, will there be anyone to sell them to?" The prospect of continuing high feed prices is deeply worrying to farmers, who can easily spend roughly 75 cents on feed to produce each pound of fish in the two years it takes to raise a fingerling to fillet size.
Overwhelmed by heavy debt and high feed prices, chicken producer Pilgrim's Pride is ducking for the protection of bankruptcy court.
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Higher feed prices.
Beef production is expected to rise as ranchers cull more of their herds because of higher feed prices.
The ministry says the price of pork in big cities soared by 17 percent last month alone, propelled by higher feed prices, rising wages and increased demand.
Those farmers are likely to respond to higher feed prices by cutting the size of herds, or at least not increasing the number of animals they raise, say farm economists and industry executives.
Higher feed prices will depress American meat and poultry production, and are likely to affect other food prices as well.In this section Output, prices and jobs Trade, exchange rates, budget balances and interest rates The Economist commodity-price index Agricultural commodities Markets Reprints.
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