An increasing number of producers are looking into installing their own on-farm grading and packing facilities.
A combination of tighter margins, reduced prices from packers and the growth in the trend towards local food sales has encouraged many free range producers to investigate ways of increasing the return on their eggs - and machinery dealers have confirmed to the Ranger that there has been a significant increase in interest from smaller scale producers.
"Over the last six to 12 months there has definitely been a big increase in small grading machine enquiries from producers and an increase in the number of producers asking us about how to grade their own eggs and the viability of doing it," said David Jones of MOBA (UK) Ltd. "There have been more requests for our small hand graders - the kind of request we would not have had five years ago. It is a completely different market at the moment.
"I think we are seeing this trend for a variety of reasons. People are informing us that they are getting disillusioned with the price they are receiving. Packers say they are being squeezed by the supermarkets as well, but some producers are now feeling that it is not so difficult to market their own eggs. Some supermarkets and other outlets are looking for locally produced eggs from local producers," said David.
He says producers can obtain an on-farm grader for a relatively small investment. The Mobanette 3 is a hand grader and can be bought for £2,300 plus VAT. It is capable of grading 1,600 eggs per hour. "It is a very well known machine. It has been around for 40 years and although there have been slight changes in that time it remains pretty much the same machine. It will sit on a table, is easy to use and easy to transport. It is a very good entry level grader for a small producer and we have these machines in stock all the time," he said.
The larger capacity Type 68 is probably MOBA’s most popular hand grader. It has twin infeed and can grade 3,000 eggs per hour. It sells for £5,690 plus VAT. The Type 88 can grade 4,500 eggs per hour and retails at £8,175 plus VAT. Both of these machines are made to order. Delivery is normally within six to eight weeks of a placed order.
Farm packing machines require a more substantial investment, but many producers are still looking at the long term benefits of making such investment. The smallest MOBA farm packer costs about £23,500, is built to customer requirement and can handle 20,000 eggs (55 cases) per hour. Larger MOBA packing machines have hourly capacities of 25,000 eggs (70 cases), 30,000 eggs (85 cases) and 36,000 eggs (100 cases).
Many producers will also need inkjet printing to stamp their eggs. MOBA will supply these, too, providing the producer with the complete package.
The printers come from MOBA’s partner, Jason Printers. Moba UK is the agent for this egg printing equipment.
"The best thing for a producer to do is speak to us first. They can come and see us in our workshop facilities with no obligation. We will show them how the machinery works and talk about the most suitable machinery for their own needs. We are also perfectly happy for them to speak to our existing customers. They give the best endorsement of the quality of our product and are honest, fair and will tell you exactly as it really is in the field." said David.
"Check everything out carefully and in detail before you buy. For example, the Jason inkjet printer fitted to the small graders will print more than 600,000 eggs with the standard small producer code using only one ink cartridge - that’s approximately five cartridges a year on an 8,000 hen unit with a Mobanette 3. The cartridges cost £42 each at the moment," he said. "These are the type of details that matter."
MOBA had a stand at the BFREPA conference at Stoneleigh, where interest in the machinery seemed high. Another exhibitor was Egg Packaging Enterprises (EPE). Like David Jones, EPE’s Steve Corden has seen a significant increase in demand for on-farm machinery. "Every machine we had on display at the conference is sold. A lot of people are wanting small graders," said Steve, who deals mainly in reconditioned machinery.
"We are doing more for small producers now than we have ever done before. A lot of producers are saying they want to do some retail because of the falling prices. You can’t blame them for that, but if a producer is thinking of buying machinery he needs to think carefully about what he is buying. He needs to get a bit of advice to make sure he gets the right machine."
Whilst it was possible to buy a reconditioned table top machine for £2,000, Steve said he would normally advise a producer to look a little higher. A 3,000 egg per hour reconditioned machine could be bought for between £3,500 and £4,000. A 9,000 egg capacity machine with a new A100 printer would sell for £12,100.
Looking into the second-hand market is clearly one way of constraining cost for a producer. A packing machine can be obtained at a significantly reduced price. For between £9,500 and £10,000 a producer can buy a packing machine with a designated capacity of 40 cases per hour, although Steve says that in reality these machines are more likely to deliver 25 cases per hour. "If I was a salesman I would tell you it did 40 cases, but I am an engineer and I would rather tell you what I know it will do."
Steve said that if a producer was expecting his eggs to go into one of the supermarkets it was vital that he had printing facilities. "You have to be able to do the required printing on the eggs - the Lion, the best before date and user code - or they will not accept them. And if the printing is not absolutely right the supermarket will just send the eggs back," said Steve. Damp and cold conditions could both affect print quality, he said - particularly with water based inks - and getting it wrong could prove very costly for a producer. "The printing has to be spot on."
Steve said EPE had first option on reconditioned machinery coming out of Holland. Exchange rates were affecting prices at the moment - although second hand machinery was not as badly affected as new equipment. Even so, demand for on-farm equipment was stronger than ever, he said, and EPE had a waiting list for producers who wanted reconditioned machinery.
Reids Machinery Sales also produce a range of graders from Riva. Models start with the S61 which packs 2,220 eggs an hour and go up to the S121 which has five feeding lanes and packs 12,000 eggs per hour. Reids also sell a range of second hand and re-conditioned graders and egg packers.
