Egg market brings no festive cheer

UK - After nearly eighteen months of falling producer prices, hopes of any improvement in the run-up to Christmas have failed to materialise.

Since August last year a series of cuts has wiped nearly 8p a dozen off the average price. While some of this decrease has reflected lower feed costs, it is calculated that in real terms producer prices have slipped by over 4p a dozen.

The main reason behind the depressed prices, say the packers, is an abundance of supplies which has led to downgrading of free range eggs.

“We have been struggling to balance supply with demand all year and there has been a significantly greater volume of egg about than we anticipated,” said David Tromans, managing director of Deans Foods.

Deans says it is still committed to a policy of maximising returns to producers and is hopeful a stronger market next year will allow the company to review its pricing structure. But while free range producers have had to get used to the cyclical nature of their market, less palatable for many will be the prospect that they may have to survive on prices that fall short of the highs previously experienced.

Source: British Free Range Egg Producers Association

22 December 2005