4p increase needed now, says BFREPA

Picture: BFREPA chairman Tom Vesey

In a meeting with the major packers BFREPA executives have spelled out the case for a four pence a dozen increase in producer price.

Chairman Tom Vesey told members of Nemal, the packers’ organisation, that producers were now faced with paying around £15 a ton more for their feed and with pullet prices predicted to rise by at least 10p, a significant increase in producer price was needed.

“The returns over the last twelve months are the very minimum we deserve for our effort and commitment,” said Tom, “and if producers are to meet the ever growing demand for free range eggs it is essential that profit levels are maintained.”

Tom said that the case for an immediate four pence rise was very real based on increased production costs and detailed costings presented by the association at the meeting show that margins have now slipped by nearly £1 a bird. And BFREPA is concerned that it will not stop there, with some very gloomy predictions about feed costs in the New Year.

“If feed costs continue to rise, which is looking quite likely, then we will have no hesitation in lobbying the packers for a further increase,” said Tom.

Commenting after the meeting David Tromans, managing director of Deans Foods, said that the packers were hopeful of increasing producer prices but it would have to come on the back of a retail increase.

“The case put by BFREPA was sound and well thought out,” said Mr Tromans. “It will significantly help us in our negotiations with the retailers.”