The Scotsman

Price rise call as feed costs soar for egg producers

- By BRIAN HENDERSON bhenderson@farming.co.uk

Free range egg producers have warned that an increase in the price they are paid for their eggs is “desperatel­y needed” if the industry is to survive in the face of sky-rocketing feed costs.

As if to disprove the term “chickenfee­d”, dry weather has caused poor crop yields across Europe’s major wheat-growing countries and the knockon effect is being felt by egg producers with some reporting a 50 per cent increase in feed costs.

Claiming that the industry was “close to the brink” the British Free Range Egg Producers Associatio­n (BFREPA) this week said that with many producers paying about £270 per tonne of feed, a medium-sized business running around 16,000 layers was facing feed bills which are £40,000 more per flock than at the start of the year.

Robert Gooch, chief executive of the BFREPA, claimed the situation was unsustaina­ble and called for an egg price rise to soften the impact: “Free range egg producers have been exposed to huge levels of volatility caused by this hot, dry weather,” he said.

“Last month we saw tough market conditions drive a major business with 17 producers out of business and I fear there will be more.

He stated that every time the price of feed rose, the small margin made by producers was eroded:

“And it doesn’t take much to turn profit into loss.”

Gooch added that a price rise was desperatel­y needed in the short term - but in the longer term retailers should help prevent a repeat of the situation by offering contracts which linked the price of eggs to the price producers had to pay for feed:

“Retailers must ensure producers have the option of a contract under which the price of feed is reflected in the price they receive for their product,” he said.

“When the feed price drops, so does the price they pay for eggs, and viceversa.

“Some retailers and their packers should be applauded for successful­ly implementi­ng these contracts but it needs to be offered across the board like it is in the broiler and pig sectors,” said Gooch. l One trend highlighte­d recently by the Central

Egg Agency has been the growth in demand for large eggs.

The co-operative group’s Andy Crossland said that retailers seemed to almost have an obsession with large eggs, and this was one issue that the egg industry needed to address:

“Retailers are looking far too much for large eggs,” he said. “We are producing far more medium than large eggs, but selling more large than medium. The industry needs to be putting pressure on retailers because it is an issue.”

An industry commentato­r said that while consumers seemed to think that large eggs were better value - possibly because the differenti­al between large and medium eggs was not that big – but when used for cooking most recipes envisaged medium sized eggs being used:

“We need to try to educate consumers a little bit more. The industry needs to take a lead.”

 ??  ?? 0 Producers have reported a 50% increase in feed costs
0 Producers have reported a 50% increase in feed costs

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