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AS FEED INGREDIENT PRICES BREAK RECORD

21 May 20212 min reading
animal feed animal feed Editor Cemalettin Kanas

Dear readers,

Breeders focus on feed costs while feed manufacturers focus on ingredient prices. With the high price on the shelves, the attention is directed to the producers who rightly point to the input prices. The record price increases in the main feed ingredients such as corn, soybean, and wheat in international markets indicate that producers are not wrong to do so.

Input prices started to break record after record in the global markets. Corn, which doubled in price within one year, saw its eight-year high. These increases are attributed to the inaccurate supply forecasts and the volatile movements of large importers. Argentina's export restrictions are one of the factors in the decrease in supply volume. Russia's slowdown in exports is effective in the price increase of wheat, another main ingredient.

Let's refresh our memory. The corona entered our lives before the end of the Trade Wars between Beijing and Washington, as the African Swine Fever (ASF) killed the pig population in China. COVID-19, which has not been completely eradicated in the past year and a half, has suddenly turned agriculture and animal husbandry into a security issue, which has been considered only in terms of nutrition needs and the economy by the common man.

On the one hand, this situation turned the inventories into a security issue. While importing countries were willing to pay much higher figures yesterday, exporters turned to protectionist policies. These two simultaneous factors skyrocketed the prices. We will continue to monitor what will happen after the pandemic.

See you in the next issue.

I wish you a pleasant reading...

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