New Year heralds further hike in feed price

Any advantage offered by last autumn's egg price increase has now been wiped out in the face of spiralling feed costs, says BFREPA, with compound prices rising again this month.

BFREPA estimates that the cost of a ton of layers' feed has risen between £20 and £30 since August last year—more in some cases. One producer told the Ranger that the ration he had been feeding from February to July of last year at a cost of £121 was now being quoted at £157 for delivery through to April.

The country's two biggest packers, Deans and Stonegate, increased average producer prices by 3.6p and 3.25p a dozen respectively at the end of October. But if producers have only been hit with a £20 increase on their feed price it is equivalent to losing 4p a dozen. Coupled with pullet rearers now looking for another 10 to 12 pence a bird to recoup their increased costs, margins are being eroded.

"There's talk of further increases in the cost of feed between now and next harvest," said association chairman Tom Vesey, "and the danger is it's going to come straight off the bottom line unless we can secure another price increase from the packers."

The case for a further price rise will be put to the packers at the end of this month when association executives meet with Nemal, the packers' organisation. But Tom Vesey accepts it will not be quite as easy this time around.

"Any increase for producers will be dependant on the packers getting more money out of retailers," he said. "The last time around eggs were in short supply and it was the run up to Christmas. It may be very different this time."