Picture: Nick Rogers, Stonegate
To keep up with the recent surge in growth of free range egg sales—described by one packer as “phenomenal”—the search is now on for extra supplies.
And while it was only last year that one packer was warning of possible over-supply problems just around the corner, any such gloom hanging over the market seems to have evaporated as free range—and organic—continue to take a bigger share of the egg market.
The latest sales figures supplied by TNS for the 12 month period ending 28 March show that free range increased its volume share by nearly 9% and now represents over 27% of supermarket egg sales. In the same period organic egg sales increased by over 11% to claim a 3.1% slice of the egg market. And it was good news for total egg sales which increased by 2.1% overall.
Managing director of Deans Foods, David Tromans, told the Ranger that there had been sustained sales growth in all of the major retailers and it would continue as further focus was put on free range and organic.
He said that Deans, having successfully integrated the marketing operation of former packer Freshlay into their business, were now in a position to review future supply levels.
“Although it is very difficult to accurately forecast sales trends, all the signs are that this growth will continue, said Mr Tromans, “and that means we will need more eggs.”
And while priority was being given to existing producers who wished to expand, Mr Tromans said that in addition to this they were now taking on producers who were new to free range.
Stonegate also report a growth in sales and they too are now looking for extra production, although commercial director Nick Rogers urged a degree of caution.
“The industry has worked very hard to improve returns for both packers and producers,” said Mr Rogers, “and we must be careful that we don’t see that unravel because of over-enthusiastic expansion.
“We will continue with the Stonegate approach of taking a balanced and long-term view of the market.”
BFREPA chairman Tom Vesey, while welcoming the latest sales figures, said it further underlined the justification for a price increase to offset the rising costs being faced by producers, particularly for feed and pullets.
“With a strong demand for our product there is no excuse for not returning a much-needed increase back to producers,” said Tom. “Profitability will be a crucial factor when it comes to producers deciding whether to expand or not.”
As the Ranger went to press it was understood that the major packers were in the final stages of negotiations with retailers and were hopeful of achieving an increase.
