Farming News - Farmers facing financial ruin unless the price of free range eggs to go up

Farmers facing financial ruin unless the price of free range eggs to go up

16 Aug 2018
Livestock / Finance

Farmers are calling for the price of free range eggs to go up because so many are facing financial ruin.

They say the recent heatwave had affected the wheat crop, which in turn has pushed up the price of chicken feed.

Producers issue warning over price of eggs

                                                              Credit: ITV Anglia

The British Free Range Egg Producers Association says dry weather has caused poor crop yields across Europe’s major wheat-growing countries and the knock-on effect is being felt by egg producers with some reporting a 50% increase in feed costs.

The association says the average medium-sized producer is spending £40,000 more per flock than at the start of the year.

“Free range egg producers have been exposed to huge levels of volatility caused by this hot, dry weather, Last month we saw tough market conditions drive a major business with 17 producers out of business and I fear there will be more. Every time the price of feed rises, the small margin producers make is eroded and it doesn’t take much to turn profit into loss.”

– ROBERT GOOCH, BRITISH FREE RANGE EGG PRODUCERS ASSOCIATION

Producers issue warning over price of eggs

                                                                      Credit: ITV Anglia

The association says a price rise is desperately needed in the short term and is also calling on retailers to prevent a repeat of the situation by offering contracts which link the price of feed with the price of eggs.

“Retailers must ensure producers have the option of a contract under which the price of feed is reflected in the price they receive for their product. When the feed price drops, so does the price they pay for eggs, and vice-versa. Some retailers and their packers should be applauded for successfully implementing these contracts but it needs to be offered across the board like it is in other sectors.”

– ROBERT GOOCH, BRITISH FREE RANGE EGG PRODUCERS ASSOCIATION