Apr 9, 2012 Belgium_Cattle farmer suffers oil price hike, low demand

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We had a good read. For the benefit of yourself. Be sure to read to the end. I want you to get good knowledge from Farmer Insurance . Cattle farmers in Belgium have suffered from increasing oil prices and low demand in the European market. Claude Andre runs a 42-hectare cattle farm in Namur Province in southern Belgium. He built his business over 20 years ago at the border between Belgium and France. Starting from cultivating cattle for meat in small scale, he expanded his business into hundreds of cattle through the years, which won a lot of admiration from the neighbors. However, in recent years he is put into hardship. "My income from raising cattle is cut by about 20 percent every year during the past three years," said Andre. Andre explained that each summer, he has to use large grass mowers to prepare food for the cattle in the coming winter and spring, which will consume at least 7000 liters of diesel. However, with the price of diesel doubling during the past five years, his cost has increased by about 4000 euros (about 5300 US dollars). Normally, the increase in cost can be partially offset by raising beef prices, however with the debt crisis spreading across the Euro-zone, people are consuming less. Europeans have cut down on their food consumption with many of them abandoning the habit of eating beef and turning to cheaper alternatives. "Generally speaking, if beef is sold at 10 (euros), pork will be sold at five while chickens will be sold at 2.5," said Andre. As a result, it is not the right moment to raise beef prices which means farmers have to endure the pressure from soaring oil prices ...

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