Egg producers lose colossal £300,000/flock

TRENDS By Patsy Hunter

“ADAS puts the total average cost of a flock of 32,000 hens at £1.24 million, with average revenue from egg sales bringing in only £921,000”

SOARING costs of production for feed, electricity, labour and other essential materials are resulting in free range egg producers losing £300,000 per flock.

That is the staggering amount revealed by new independent data from consultants ADAS, which shows that a typical free range egg farm is on course to lose almost £10 per hen.

ADAS puts the total average cost of a flock of 32,000 hens at £1.24 million, with average revenue from egg sales bringing in only £921,000.

According to data produced earlier this month, these loses are a direct result of huge increases in the cost of production with the only solution being a rise in farmgate prices.

“Farmers have seen small rises in the price they are paid for their eggs, but it’s nowhere near enough for their businesses to be sustainable,” said Robert Gooch, CEO of the British Free Range Egg Producers Association (BFREPA).

“We know the cost of living went up 10.1% in the 12 months to September, and rising food prices was the key contributor. We need the whole industry to collaborate and try and fix this broken market.”

As a result, industry leaders have been calling for unity from across the sector to prevent more producers being forced out of production.

In September, BFREPA called for the industry to come together by signing its Egg Pledge in a bid to ensure more money paid by consumers is passed onto the producers thereby ensuring a more sustainable future.

Industry predictions are that both production costs and egg demand will continue to increase over the winter, causing more farms to suffer as the crisis continues.

Mr Gooch said the Egg Pledge aimed to unite the sector behind a commitment to work together for a better, more sustainable future.

He urged all businesses involved in free range production to sign the pledge, which already has hundreds of signatories.

“By signing the Egg Pledge, you are showing your support for British free range egg producers and playing your part in ensuring that they have a sustainable future,” Mr Gooch explained.

“It is of the upmost importance that we do everything we can do bring about positive change in the industry, so that producers receive the support and success that they need.”

BFREPA says it will be approaching all egg packers and retailers in the country to ask for their support.

OUT AND about! A free-range hen, doing some free-ranging