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Egg Industry Worried About Oversupply Problems

by 5m Editor
30 January 2012, at 11:18am

AUSTRALIA - The egg industry is concerned that an oversupply of eggs could send farmers broke.

According to ABC, the Egg Corporation has done the numbers, and says by July there'll be more than one million eggs per day too many.

A surplus of eggs could reduce prices paid to farmers by about 30 to 50 cents a dozen, wiping out their profit.

Egg production has increased by more than 20 per cent since 2009, but the retail price hasn't moved.

The Egg Corporation, which represents 400 commercial egg farmers, has invited the top 25 producers to Sydney to work out what needs to be done.

Chief executive James Kellaway says 400,000 to 500,000 birds may need to be culled.

"The margins in this industry, like other fresh perishable type industries, are squeezed," he says.

"They are low, the margins are not significant."

"To that extent, any oversupply or any small chink in the market, can have significant ramifications if it's sustained over the longer term."