Supermarket giant Safeway has refused to acknowledge the cost increases facing organic producers.
The retailer has dismissed a BFREPA warning of major organic egg shortages, if new costs are not reflected in retail price increases, as "alarmist".
The BFREPA alert was launched in the Ranger last month after an analysis revealed that meeting new EU organic rules being introduced over the next three years would add 36p a dozen to the cost of organic production.
The changes include a total ban on synthetic amino acids, the move to 100 per cent organic feed, the requirement for pullets to be organically reared and the drop in flock size and stocking rates.
BFREPA warned that faced with the tough new demands some producers are already planning to quit organic production and that others will follow suit unless retailers recognise the need to increase prices. The result would be a dramatic shortage in the organic sector which is currently showing steady growth.
The association alert attracted widespread media attention from television, radio, newspapers and magazines. On the Radio 4 programme Farming Today Kevin Hawkins, Safeway's director of communications, responded to a report of the looming crisis by dismissing producer concerns.
"The thing that worries us deeply," he said, "is what will happen to demand for organic eggs from consumers if we pass on any of these cost increases. You are already talking about a seventy per cent price differential for organic eggs over the next grade down, free range.
"Seventy per cent is a lot to ask. If you are going to widen that differential still further, which is what the producers are asking us to do, then you are going to encourage a lot of people-all but the really hard committed organic consumersto trade down. So I think the producers could end up shooting themselves in the foot."
When pressed on the reality that producers need to be making decisions now in order to comply with the up-coming changes on stocking rates and pullet rearing Mr Hawkins went on: "I think that might be somewhat alarmist. I think in a market where demand is still growing and the 'existing differential seems to be at the moment holding good then I don't think anybody is going to be rushed into making immediate decisions.
"Bearing in mind that we are not sure how much of a cost increase this is going to be and if it is going to be phased in over three years whether it is going to be front-loaded or back-loaded. I don't see any big retailer rushing to commit themselves one way or another at this stage."
The BFREPA warning also appeared in the influential trade magazine The Grocer as well as newspapers across the country including the Financial Times, Western Morning News and the Yorkshire Evening Post. A report on ITV television in the South West featured vice chairman John Widdowson and Somerset organic producer Ian Howe.
Ian told the TV audience that unless retail prices increased then organic production would end on his 30,000 bird farm near Wellington.
"When the changes come in we will cease to produce organic eggs. It's as simple as that," he said.
John Widdowson drove home the message on both TV and radio. "Our members want to carry on supplying this growing market but there has to be an awareness that these eggs must cost more," he said "The retailers must be aware and must make the consumer aware that prices have to rise.
"If the cost of these changes are not met then the eggs will not be there. Our members cannot take 36p a dozen off the bottom line and still be in business.
"And they have to start making decisions about their future plans now. If they are not confident that extra money is to be forthcoming then there is no doubt producers will give up on organic."
The BFREPA campaign to get a fair return for organic producers continues. We will now be writing directly to all major retailers setting out our concerns.
