Stonegate raises producer prices

Egg packer Stonegate has announced it is putting up the price it pays some of its free-range and organic egg suppliers in response to improving market conditions.

Letters have gone out notifying producers on the Columbian Blacktail contract for supermarket Waitrose of a 4p/doz increase across all grades. This takes the producer price to an average of 100p/doz, based on yield, agriculture director Richard Kempsey told Poultry World.

There is also better news for organic producers supplying Stonegate, with a 10p/doz price rise flagged up, taking the average producer price to 165p/doz.

Together the two groups of suppliers make up about half of all Stonegate’s free-range supply base.

Mr Kempsey added the company was involved in detailed price negotiations with retailers and hoped to be able to announce a rise for its other free-range producers before too long.

The news came through on the same day that the NFU stressed the need for a “significant and immediate” producer price rise for free-range producers, in order to secure the future supply of British free-range eggs.

It also follows the recent price increase by Noble Foods, which put on 3p/doz for free-range seconds and smalls from 3 March in response to the improved market for processing. Noble has also hinted at further price rises in March.

But Oaklands Farm Eggs remains cautious about moving too soon.

“We have had a long period where prices have been low and only a short time where they’ve been higher,” the firm said.

While there was evidence of some member state government’s getting tough with producers still operating illegal cages in Europe, with forced depletions, it was not known how many producers would re-stock. “It’s just too early to react yet (on price). These are long-term decisions,” he said.

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