Packers will take heart from the latest supermarket sales figures that show an increase in overall egg sales.
Although volumes for February were disappointing, an increase in egg sales for January and again last month may signal that the market is recovering after a period of disappointing sales during the second half of last year.
The latest figures supplied by TNS reveal that overall egg sales for the four-week period ending March 27 are 0.6 per cent up on the same period last year.
While free range and organic sales have continued to grow—even during the period of depressed total sales—it is cage eggs that are losing significant market share. March of this year saw cage sales down by 6.8 per cent compared with the same period in 2004 while free range and organic volumes increased by 12.4 and 3.4 per cent respectively.
But the biggest growth was seen in barn, with a 16.5 per cent increase last month when measured against the same period in 2004. This was mainly attributable to ASDA’s strategy of rolling barn eggs out in place of premium cage. This move could further boost free range sales in the future, as having traded customers up from cage to barn, a move to free range will now be less of a jump.
Sales director for Deans Foods, Geoff Cooper, told the Ranger that he was encouraged by the figures but said they had to be viewed with a degree of caution.
“Easter fell in March this month so that is likely to have given sales a boost,” said Mr Cooper. “All eyes will be on April’s figures to see if the trend continues.”