Egg processors warn Iran conflict is driving up costs

Egg product manufacturers are facing renewed cost pressure from rising energy, fuel and packaging prices, with the British Egg Products Association warning that conflict in Iran is adding to supply chain volatility.

BEPA said manufacturers, foodservice operators and retailers were already managing a difficult trading environment, with further inflation now affecting key inputs across the egg products sector.

The association said energy, fuel and packaging costs had all risen sharply, while some operators were also facing challenges around the availability of raw material.

Egg processing relies heavily on pasteurisation, drying and refrigeration, making the sector particularly exposed to energy price increases.

BEPA said global energy markets had been highly sensitive to disruption in the Middle East.

It warned that rising wholesale energy prices were increasing costs across egg product processing.

Fuel costs have also come under pressure as shipping routes are diverted and global freight capacity tightens.

The association said this was affecting both imported inputs and domestic distribution, with operators facing higher transport charges.

Packaging materials, particularly plastics and cardboard, have also seen further inflation.

BEPA said petrochemical supply chains were under pressure, adding to manufacturing costs across the sector.

Elwyn Griffiths, chair of the British Egg Products Association, said the conflict was already affecting members.

“The conflict in Iran is having a clear and immediate impact on our members’ cost base,” he said.

“Energy, fuel and packaging are all seeing significant inflation, and these are not optional inputs, they are fundamental to producing safe, high-quality egg products.”

Mr Griffiths said members had worked hard to absorb as much of the pressure as possible.

However, he warned that the scale of the increases was becoming “unsustainable”.

BEPA is calling for continued dialogue across the supply chain to support stability and transparency.

It is also urging government to recognise the cumulative impact of global conflicts on UK food production.

Mr Griffiths said egg products were essential ingredients for thousands of food manufacturers and caterers.

“We need a coordinated approach to maintain resilience and protect the long-term viability of the sector,” he said.

BEPA said a coordinated response was needed to maintain resilience across the egg products sector and the wider UK food manufacturing supply chain.