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Chicken Producers Fear Price Cuts

26 June 2014

AUSTRALIA - Chicken producers in Hunter Valley fear they will be forced out of business if processor Baiada cuts prices.

The Hunter Valley has a strong chicken meat industry, but the ABC has been told some growers fear their livelihoods are now at risk.

Hunter chicken growers say the latest Baiada contract is for 68 cents a bird - down from above 80 cents.

The ABC has been told some growers fear they will be forced out of business and others are contemplating switching to egg production, capitalising on an egg shortage.

The ABC has been told 6 out 31 Hunter growers have signed the new contract.

Baiada has told the ABC there has been litigation between it and the Hunter growers in recent years.

It says despite the strain on the business relationship the company has offered ongoing contracts with prices on par with other processors.

It adds that it was not obliged to offer new contracts beyond June this year after legal action with the growers in the past but has done so in an attempt to give them business certainty.

TheMeatSite News Desk

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