Producer price finally set to rise

After the longest period of depressed prices the free range sector has ever known, producers are at last in line for an increase.

Michael Kent, chief executive of Noble Foods, told the Ranger that a lift in producer prices was "close to happening".

Following a rise in retail prices last month that saw the average shelf price of a dozen free range eggs increase by around 13p, packers have been involved in protracted negotiations with retailers in an effort to secure a share of the increase.

While Mr Kent declined to comment on how successful these talks had been, he did say that retailers were aware that producers needed more money. But Mr Kent would not indicate how much producers were likely to receive.

"At this stage it would be wrong to speculate on that figure before we have completed our negotiations with the retailers. "But I'm well aware of the plight producers currently find themselves in and we shall aim to pass on as much as we can."

BFREPA maintains that an increase of at least five pence a dozen is required.

"We have recently had to absorb feed price increases in the region of £5 a tonne and feed is predicted to rise again by a similar amount between now and Christmas," said chairman Tom Vesey.

"That's 2p of any increase taken care of before it even begins to restore profitability for producers."

Feed costs have risen on the back of spiralling wheat prices which are up by around £20 a tonne on last year.