Most farmers are failing to cover the cost of production as grain prices skyrocket due to drought. The price of grain has doubled over the past year, ABC Rural reports. Some farmers are even culling animals.

Low raw material stock, due to the drought, has led to record feed prices in Australia. Photo: Pexels

Egg and pork farmers affected

Many cattle farmers are affected, but also poultry farmers are struggling. Queensland United Egg Producers chief executive John Coward said to ABC that the high grain prices meant egg farmers were losing money on every dozen eggs sold in Australia. “If you had to have a 40% increase in your cost of food at home, the impact on your house would be incredible and the same on your ability to feed your family,” Mr Coward said.

The price of grain makes it also difficult to make money out of pigs at the moment.

Pork producers, already struggling with low pig prices, said they had added 50 cents per kilo to their cost of production over the past 6 months because of grain prices.

Government aid

New data showed 2018 had so far been among the hottest and driest years on record for parts of Australia. The devastating drought has left Australian farmers struggling to stay afloat. Billions of dollars in government aid, across all tiers, has gone to farmers during the drought this year. Tens of millions more has been raised by corporations and individuals.

Emmy Koeleman
Editor: All About Feed & Dairy Global