Hunter poultry farmers say there are early signs of confidence returning to the industry, despite rising feed prices, supply shortages and growing pressure on major producers.
The optimism follows recent reporting on Inghams, which warned fuel and supply chain stresses could add up to $10 million in extra costs as global conflict continues to impact the sector.
But, local breeders at this year’s Tocal Field Days, one of the Hunter’s biggest agricultural events, say smaller operations may have an advantage.
Poultry breeder Jay Courtney believes those businesses are better placed to adapt to rising costs and changing market conditions.
“I think there’s a bit more confidence now,” he said.
“At one stage people were worried about scaling back and not investing in their businesses.”
Jay, who runs Jilliby Poultry Hatchers and Coast 2 Country Eggs, attended the event alongside his father, Michael, as the family showcased heritage chickens, ducks, eggs and honey.
The 16-year-old farmer said feed prices had risen about 10-to-15% in the past three months, forcing local producers to increase prices on eggs and chickens.
The family’s eggs recently rose from $12 to $14 a carton.
“People have commented on it, but most understand what’s happening,” he said.
Jay said rising fuel prices were flowing through the entire supply chain, too.
“The fuel hits everything,” he explained.
“Transport, electricity, feed, it all adds up.”
Michael Courtney said Hunter produce stores were also experiencing a blockage in chicken feed supply, making it harder for smaller farmers to access stock.
“There’s a bit of a blockage with getting chicken feed at the moment,” he told the Newcastle Weekly.
“The produce shops are struggling to get it from suppliers.”
Dry conditions across parts of NSW have also reduced crop yields used in feed production, adding further strain to the industry.
The family said the pressure had already forced some operators to shut down, with one supplier in the region recently closing.
Despite the challenges, Mr Courtney believes smaller farms have advantages over larger corporations because they operate with fewer staff, loans and overhead costs.
“No big loans, no massive overheads,” he said.
“I think smaller businesses can adapt quicker.”
Jay, meanwhile, is continuing to expand his operation despite the uncertainty.
The business has grown from selling a few dozen eggs a week to now hundreds.
Mr Courtney said supporting local farmers remained important during uncertain economic conditions.
“They’re the backbone of the industry,” he stated.
“Luckily, Jay’s just a young kid who’s had a passion since he was about 10 years old.
“He knows it’ll get better.
“There’s still uncertainty, but people are starting to feel a bit more positive again.”
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