Questions for egg producers

Questions are being raised over wage subsidy payments to egg producers after demand for the pantry staple soared during the coronavirus lockdown.

Data from the Ministry of Social Development (MSD) shows subsidies were paid to several egg producers, despite a surge in demand at supermarkets. The ministry this week confirmed it is following up on a complaint regarding egg producers accessing the scheme, which relieved financial strain on employers during the Covid-19 pandemic.

MSD client service support manager George van Ooyen said random audits were being undertaken, as well as targeted audits based on data mining.

Auditing to date had found employers were doing the right thing in most cases.

‘‘In the small number of cases where payments should not have been claimed, what action we take will depend on the circumstances,’’ van Ooyen said.

According to the MSD, Zealand Farms received $153,192 on behalf of 23 staff. Its brands include Animal Welfare, Eco Eggs and Zealand Farms. Figures from data analytics and research company IRI show supermarket demand for the brands increased significantly during lockdown.

Stuff made multiple attempts to contact Zealand Farms, as well as Spray-free Holdings (trading as Drillers Poultry Farm), Green Acres Free Range and Braemar Poultry Farm. Collectively, the three companies were paid subsidies of $266,947.20 for 42 employees, according to MSD.

A Countdown spokeswoman said the supermarket sold 29 per cent more eggs during lockdown.

Peter Sandle, of Otaika Valley Eggs, said the company repaid the subsidy after it did not see the 30 per cent drop in revenue required to qualify for it.

‘‘We were initially worried about losing large food service customers. However, demand from supermarkets and any smaller retailers that remained open ... more than compensated.’’

Sandle said eggs were in short supply during lockdown.

Michael Brooks, of the Egg Producers Federation, said the situation was not the same for everyone. ‘‘A lot of food service business, farmers markets and gate sales were lost.’’