More packers move to raise prices

Egg packers have fed back some increases in producer prices in response to rising feed costs, though not enough to compensate for earlier cuts.

Stonegate said it was raising its producer price by an average 6.4p/doz across all ranges and sizes, taking its average payout to 81.6p/doz from 31 October.

“This is a direct response to the rising cost of feed,” said agricultural director Richard Kempsey. “We are acutely aware of what impact raw material prices are having. Feed has increased by £37/t to £38/t since June, according to our benchmarks.”

But he added that the company still remained extremely worried about prospects for the next six months. “There is still a fundamental oversupply of eggs in the market,” he said.

Stonegate’s move follows price increases by other packers. Noble Foods raised its price by 6p/doz at the start of the month, though director Andrew Joret said this had been funded by the company, rather than extra money from retailers.

Kent firm Fridays also raised its price by 8p/doz for first grade eggs, and 4p/doz for small eggs. And Yorkshire Farmhouse Eggs added 4p/doz across the board in October, on top of a 6p/doz for medium eggs and 2p/doz increase for large in September.

But none of these increases fully compensates for previous cuts. “We need another 20p/doz to get back to where we were three years ago,” says Norfolk free-range producer Jason Cooper. “Then feed was £250/t and we were getting £1.14/doz. Now feed is £245/t, but we are only getting 90p/doz.”