Scottish packer raises egg price
Leading Scottish egg producer Glenrath Farms has become the latest packer to pass on a price increase to its free-range suppliers, reflecting the improved market conditions.
The company has implemented an across-the-board increase of 5p/doz, on top of the 5p/doz increase it gave to organic egg producers in January.
This takes the flat-rate producer price for free-range eggs to 90p/doz and the organic price to 148p/doz, director John Campbell told Poultry World.
“Eggs are very scarce, especially in the breaking sector, and supermarkets are reacting to the shortage,” he said.
Seconds had been making as much as 125p/doz, he said, a long way from where they were last year when the market bottomed out at just 7.5p/doz.
“It is the second quality eggs that are really driving the market. Breakers are even going into retailers looking for eggs for processing.”
Producers had been losing money for far too long, said Mr Campbell, who said the grants available in Scotland and Wales to help new producers into egg production had been one of the reasons for the surplus.
“Now, producers are making some money again. As long as we can hold back eggs coming in through the ports, the market will continue to improve.”
The Glenrath price increase follows moves by other packers. Kent company Fridays has increased free-range prices by 7p/doz for large, medium and smalls, and by 10p/doz for seconds.
A letter from operations manager Martin Flegg explained that it was the shortage of colony egg that was driving the market.
“The free-range egg market is less oversupplied than previously, due to other packers cascading free-range eggs into colony, along with supermarket promotions and some producers delaying restocking their pullets.”
Meanwhile, Stonegate has increased its prices for Columbian Blacktail eggs by 4p/doz to 100p/doz, and for organic eggs by 10p/doz to 165p/doz.