Producers have welcomed the recent increase in egg price—which follows successful negotiations between packers and retailers—but there are fears that it will not be sufficient to cover spiralling feed costs.
The country’s two biggest egg packers—Deans Foods and Stonegate—have increased their average producer price for a dozen free range eggs by 3.6p and 3.25p respectively. This leaves Deans now paying an average of nearly 70p a dozen based on 89.5p for Very Large; 83.5p for Large; 62p for Medium; and 34p for small. An increase of 5p on seconds to 24p reflects the strong demand for eggs into the processing sector.
The current packer price is now higher than it has been for over four years, but BFREPA chairman Tom Vesey insisted it had to be viewed together in conjunction with feed prices.
“We are delighted to have received this increase,” said Tom, “and while it should be enough to offset the extra costs incurred by producers so far, the signs are that production costs are set to rise further.
“Our main concern is that while this represents a sizeable increase for producers, it may not prove enough with feed prices still climbing.”
BFREPA estimates that by January producers will be paying at least £20 a ton more than the low point of this year.
“That sort of increase is equivalent to four pence a dozen,” said Tom, “which takes care of our price rise before we even consider the fact that pullet prices are rising too.”
On top of the high wheat price pushing up the cost of compound rations there has been a big hike in the cost of soya due to a combination of lower than expected yields in the USA and an increase in world demand. Some are gloomily predicting that the £20 a ton extra being paid by January could quickly become £30.
Tom Vesey said that BFREPA would continue its close dialogue with the packers and would push for another increase if necessary.
