Saturday 26 May 2012
Headlines
Did you find this story interesting? (0) (0)
16/09/2009 09:31:55
Egg producer price reduced by two major packers
Two of the major packers have cut payments to producers just two months after increasing their rates on the back of increased feed costs. But Stonegate has so far resisted the temptation to follow the lead of Noble. It is sticking to the prices it set in June and says it will continue to monitor the situation over the coming weeks.
Noble was the first to announce a cut, saying the reduction was because feed prices had now fallen back again. Fridays has followed Noble’s lead, and although BFREPA chairman Tom Vesey said he was disappointed by the cut in prices.
Noble has reduced payments by 3p per dozen on very large eggs, 3p on large eggs and 1p on medium eggs. The reductions equate to a weighted average cut of 2p per dozen. Martin Troop said, "Feed prices have gone down every bit as much if not more than they went up." Despite that, the current reduction announced by the company was lower than the increase Noble introduced in June, he said. That increase amounted to a weighted average of 3.17p (1p on large and 7p on medium eggs). "We are trying to be sensible about it and offer a fair price for producers’ eggs."
Fridays responded to Noble’s announcement by introducing the same cuts in payments – 3p on very large, 3p on large and 1p on medium, although Martin Flegg said the company was still offering better terms than its rivals. "We have also felt the need to drop the payments, but we still maintain a considerable premium over other major packers."
Richard Kempsey at Stonegate said his company was "aware of the drivers in the market at the moment" – mainly the price of feed – but Stonegate would continue to monitor those drivers rather than increasing prices now. "We are not immediately following Noble. We will review things over the next few weeks."
Although the increased payments introduced in June followed sharp increases in feed prices, the decision to raise payments was also linked to a growing concern amongst packers about future egg supplies. There will be a need for expansion within the free range egg sector to help fill the gap created by the ban on conventional cages in January 2012, and Tom Vesey said it was one issue packers should consider before cutting producer payments.
He said that packers needed to take account of the investment producers would be needed to make in the industry. The ban on conventional cages, the increase in external stocking densities and the reduction in internal stocking densities for longstanding free range producers would all increase pressure on producers to invest to meet increased demand for free range eggs. Payments were one way of encouraging such investment.
For more details about free range and subscribing to the Ranger magazine visit http://www.theranger.co.uk
Noble was the first to announce a cut, saying the reduction was because feed prices had now fallen back again. Fridays has followed Noble’s lead, and although BFREPA chairman Tom Vesey said he was disappointed by the cut in prices.
Noble has reduced payments by 3p per dozen on very large eggs, 3p on large eggs and 1p on medium eggs. The reductions equate to a weighted average cut of 2p per dozen. Martin Troop said, "Feed prices have gone down every bit as much if not more than they went up." Despite that, the current reduction announced by the company was lower than the increase Noble introduced in June, he said. That increase amounted to a weighted average of 3.17p (1p on large and 7p on medium eggs). "We are trying to be sensible about it and offer a fair price for producers’ eggs."
Fridays responded to Noble’s announcement by introducing the same cuts in payments – 3p on very large, 3p on large and 1p on medium, although Martin Flegg said the company was still offering better terms than its rivals. "We have also felt the need to drop the payments, but we still maintain a considerable premium over other major packers."
Richard Kempsey at Stonegate said his company was "aware of the drivers in the market at the moment" – mainly the price of feed – but Stonegate would continue to monitor those drivers rather than increasing prices now. "We are not immediately following Noble. We will review things over the next few weeks."
Although the increased payments introduced in June followed sharp increases in feed prices, the decision to raise payments was also linked to a growing concern amongst packers about future egg supplies. There will be a need for expansion within the free range egg sector to help fill the gap created by the ban on conventional cages in January 2012, and Tom Vesey said it was one issue packers should consider before cutting producer payments.
He said that packers needed to take account of the investment producers would be needed to make in the industry. The ban on conventional cages, the increase in external stocking densities and the reduction in internal stocking densities for longstanding free range producers would all increase pressure on producers to invest to meet increased demand for free range eggs. Payments were one way of encouraging such investment.
For more details about free range and subscribing to the Ranger magazine visit http://www.theranger.co.uk
No Comments
Nobody has posted any comments on this story.
|
Farming items for Sale
|
DEUTZ AGROTON - Dungannon(GBP 9750)
Massey Ferguson - 6270 - Carnforth
(Price on Application)
(Price on Application)
Used Massey Ferguson 2008 MF6480 - Grantham
(Price on Application)
(Price on Application)
Ford 6610 - Kirton Lindsey
(Price on Application)
(Price on Application)
Deutz-Fahr Agrotron K90 - Banchory(GBP 27600)
Related News
Packers lower producer egg prices as feed falls - 08 Sep 2009Two of the major packers have cut payments to producers just two months after increasing their rates on the back of increased feed costs. But Stonegat...
Major packers respond with price rises - 26 Mar 2012Noble Foods and Stonegate have both responded to recent moves in the egg market by announcing increases in producer prices. Noble’s wrote to ...
Egg Producer aims to unite struggling farmers into action against 'greedy' packers - 13 Jul 2011An Essex free range egg producer is calling on fellow egg producers to come together and fight the cartel of UK packers who have driven the price farm...
Feed price crisis set to hit producers hard if packers and retailers do not respond - 20 Sep 2007Free range egg producers throughout the UK have been forced to accept increases in feed prices throughout the year and things are not looking better. ...
Egg packers raise prices as feed costs increase - 18 Oct 2010Two major packers have raised producer prices following lobbying by the British Free Range Egg Producers’ Association, and others may follow. ...
Oaklands reduce egg price - 04 Jun 2010Oaklands Farm Eggs is cutting producer egg prices – and the company has warned that the price will be reduced still further unless the number of new e...
Sales slump hits organic egg producer price - 21 Aug 2008A slowdown in the retail demand for organic eggs has led to Noble Foods slashing its producer price. According to the packer, not only has sales gr...
Shropshire egg packer opts for on-farm egg stamping - 01 Sep 2008Shropshire packer Oaklands Farm Eggs is the first to commit to stamping 100% of its eggs on farm, and has already reached 98% roll-out. "The whole poi...
Price cut plunges egg producers into the red - 15 Oct 2008A drastic reduction in the price Noble Foods pays for free range eggs has left producers who supply the packer now losing money, calculates BFREPA. ...
Egg producers fury at price reduction - 14 Nov 2008Most packers have reduced their buying price for free range eggs in the wake of Noble Foods’ decision to slash its producer price last month. ...
