Come March 15, farmers will be paying more for feed produced by Pinnacle Feeds Ltd (PFL).
A media release signed by senior commercial manager, Denisha Mayers-Gardner, said there would be an eight per cent increase next month, although there might be a slight variation based on the type of feed.
“With the ongoing war between Russia and Ukraine, coupled with strong demand from China and uncertainty over the supply from South America due to adverse weather conditions, Pinnacle Feeds Ltd (PFL) continues to be adversely impacted with respect to the price of the primary inputs to our plant, namely corn and soybeans,” it said.
Graphs courtesy of the Department of Agriculture, National Agriculture Statistics Service USDA, showed the sharp increase in the price of corn and soybeans since 2020.
“Over the past three years while grain prices have doubled, PFL has implemented several initiatives to reduce our internal costs by focusing on plant efficiency and energy conservation. Additionally, we have been procuring grain months in advance when prices are lower, while also exploring sources out of Argentina and Brazil, all in an effort to reduce the impact on our customers.
“With the price support from the Government having ended in February 2023, we are no longer able to absorb the raw material price increases and must adjust our prices if the company is to remain viable and continue to support our local community.”
Pinnacle Feeds said it would continue to monitor the international grain prices and “support the local community with quality feeds that provide the best value for money”. (PR/SAT)