Prepare for EGG SHORTAGE as farmers threaten to quit en masse unless all major supermarkets give them up to 80p more for a dozen
- Industry chiefs say major supermarkets refusing to increase the price of eggs
- This is despite producers putting up with rocketing bills for feed and energy
- More than half of farmers are now considering stopping production, survey says
A row between farmers and supermarkets over soaring costs has sparked fresh fears of egg shortages, after industry chiefs warned many could shut down production.
Farms are calling on all major supermarkets to hike the price of a dozen eggs by 40p for free range and as much as 80p for organic, meaning some customers would have to shell out some £4.40 per box.
They're asking for the increase in order to help producers cope with rocketing bills for fuel and energy, which have risen by 30% and 40% respectively in recent weeks.
Meanwhile the war in Ukraine is also hitting farmers in their pockets, with the cost of feeding hens with grain grown in the region also now 50% more expensive.
But despite warnings and pleas for help from the British Free Range Egg Producers Association (BFREPA), the UK's biggest supermarkets have yet to increase the price of free range and organic eggs to a level where many farms can break even.
BFREPA surveyed egg producers last week and found that more than half of farmers are seriously considering stopping production until the price they are paid improves.
A further 18% said they will make their decisions at the end of their current flock, while more than two-thirds said they would leave egg production within a year if a price rise wasn't forthcoming.
Robert Gooch, CEO of BFREPA, said: 'There are clear and obvious cost increases being heaped upon farmers, and retailers simply aren't sufficiently adjusting the retail price.
'Any increases being made are too little and too slow. They are suffocating businesses.
'This is nothing more than supermarkets putting cheap food marketing tactics above the needs of the primary producer.'
Mr Gooch explained how every major retailer has been asked to increase free range egg prices by at least 40p per dozen, while organic eggs require an increase closer to 80p per dozen.
Despite multiple pleas to the likes of Tesco, Asda, Morrisons, Sainsbury's, Aldi, Lidl, Marks and Spencer, and Waitrose for help - as the parties with the most power to make a difference in the supply chain - he claims they are not doing enough
'Many of my members are losing money on every egg laid, and our data shows that even those who are making a small profit do not see a long-term future,' Mr Gooch added.
'The appetite for eggs from the public is extraordinary, but I'm afraid we will see shortages of British free range and organic eggs on the shelves before long.'
Industry chiefs have also called a Crisis Summit at the Pig and Poultry Fair on 10 May and invited representatives from each retailer to attend to discuss how to resolve the issue.
Andrew Opie, Director of Food & Sustainability at the British Retail Consortium said: 'Retailers have long-standing, established relationships with their suppliers and know how important maintaining these are for their customers and businesses.
'Supermarkets source most of their food from the UK and know they need to pay a sustainable price to farmers but are constrained by how much additional cost they can pass onto consumers in this very difficult market.'
A Sainsbury's spokesperson added: 'We are in close contact with all our suppliers and understand that many are facing unprecedented cost challenges throughout their supply chains.
'As a business we want to be able to support our suppliers so that we can help them to navigate these challenges, while maintaining high levels of animal health and welfare, as well as product quality.
'We are working with our egg suppliers to make sure they receive a price that reflects the increasing costs they are facing. This is based on real time factors, such as the cost of feed.'
Other major supermarkets have all been approached for comment.
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2022-04-20 10:13:41Z
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