Calls for free-range egg price rise as losses near £10 a hen
© Tim Scrivener Free-range egg producers are in desperate need of a price rise after new figures revealed that farmers are now losing nearly £10 per hen as the crisis in the sector drives more businesses to the wall.
The latest analysis from farm consultants Adas shows that a typical free-range egg farm is on course to lose more than £300,000 a flock.
Adas puts the total average production cost for a flock of 32,000 hens at £1.24m, with average revenue from egg sales only bringing in £921,000.
This unsustainability has led to some producers being forced to cease production altogether.
See also: Noble Foods raises egg price but farmers face costs crisis
The British Free Range Egg Producers Association (Bfrepa) said the only solution is for farmgate prices to rise.
Chief executive Robert Gooch said: “We know the cost of living went up 10.1% in the 12 months to September, and rising food prices was the key contributor.
“Farmers have seen small rises in the price they are paid for their eggs, but it’s nowhere near enough for their businesses to be sustainable.
“We need the whole industry to collaborate and try and fix this broken market.”
Egg pledge
Bfrepa launched the “Egg Pledge” last month, calling for greater teamwork across the whole free-range egg supply chain. The pledge already has 300 signatures.
“By signing the Egg Pledge, you are showing your support for British free-range egg producers and playing your part in ensuring that they have a sustainable future,” Mr Gooch said.
“It is of the upmost importance that we do everything we can do bring about positive change in the industry, so that producers receive the support and success that they need.”
The cost of feed, electricity, labour and other essential materials continues to be at record levels and industry predictions are that production costs will increase further over the winter, while demand for eggs increases.