Push for “significant” price increase

A major effort is now underway by packers to secure increased prices from retailers so that money can be urgently passed back to producers.

BFREPA has joined in the push by writing to the senior trading directors of the major supermarket chains.

"Our Previous letters to buyers have largely been ignored so we've gone higher up the chain," said BFREPA chairman Tom Vesey. "Perhaps now that supermarkets are experiencing empty shelves the message will hit home."

The BFREPA letter has warned retailers that the supply situation risks deteriorating further.

"A shortage of free range and organic eggs has slowly been developing over the last year as demand outstrips supplies," wrote BFREPA. "We believe this situation will worsen very quickly unless the financial needs of producers are addressed. In the past, growth within our sector has come from both flock expansion by existing producers and new entrants to the industry.

"Currently existing producers cannot afford to invest further in their businesses due to the increased costs they are experiencing whilst at the same time the poor returns for free range and organic egg producers have brought to a halt the flow of new entrants.

"Unless producers see an immediate improvement in returns," the letter continued, "the supply situation can only deteriorate further during the coming months, which coincides with the prime time for eggs sales."

Supermarket trading directors have been urged to "show support for an immediate and significant increase in returns for producers".

"Such action," writes BFREPA, "will allow our members to plan forward and ensure that future demand for free range and organic eggs is met."

It is understood that Noble Foods has producers on its books with planning clearance to put up new buildings housing the equivalent of 400,000 free range birds, but the prospect of poor returns is holding them back.

"All that is required for the green button to be pressed is the knowledge that their investment will be a profitable one," a spokesperson for Noble Foods told the Ranger, "and right now that's in the hands of the retailers."

You can visit BFREPA site at www.bfrepa.co.uk