Tyson Foods Inc, one of the United States’ largest meat producers, has announced it has stopped using wheat in its animal feed, as prices for the grain have risen too high. The Arkansas based company, which produces beef, pork and poultry is the United States’ largest poultry company and number two worldwide.

A number of livestock producers have preceded Tyson in ending the use of wheat in feedstuffs after prices of the grain rose above maize prices for the first time in over a decade last year.

However, the implications of a switch by such a large producer may impact on the availability of maize, which is expected to be reduced this year following adverse weather conditions in a number of major producing regions.

Conversely, in the US, particularly the South East, feed wheat stocks are at their highest level in four years. As a result of the increase in production, some US producers are expected to remain with or switch over to US wheat as the year progresses, according to US Department of Agriculture analysts.  

The UN Food and Agriculture Organisation speculated earlier this month that world grain banks would be able to recharge in 2012 for the first time in a number of years on increased production and static demand.

Animal feed continues to be the most significant expense for livestock producers, with UK figures showing input costs, particularly for imported feed grains, continue to rise.

A report released on Wednesday by the UN Environment Program warned that industrial meat production is hampering access to staple foods for the world’s poorest by raising food costs, contributing to environmental degradation and diverting grains from those who need them to livestock raised for those who can afford to consume higher meat diets.

Tweet