'Free range egg farmers are today calling for the UK’s major retailers to immediately increase the price of a dozen eggs in their shops by 40p to avert a catastrophe in the sector.' British Free Range Egg Producers Association.
The British Free Range Egg Producers Association recently wrote about the impact of increased energy, labour and raw material costs on the cost of eggs, stating that some farmers are finding that they currently make a loss on each egg laid by their hens. They issued this extremely helpful breakdown:
• Feed (increase of approximately 50%)
The cost of feed for egg laying birds is now £400 per tonne, up around 50% over the past two years, and is expected to rise even further with Russia and Ukraine being major exporters of key raw materials used in the feed.
• Pullets (increase of approximately 15%)
The cost of pullets has risen by 5% over the past month and more than 15% in the past two years.
• Transport (increase of approximately 30%)
Fuel costs continue to increase at record levels, impacting the whole supply chain, from delivery of feed stuffs right through to the delivery of a box of eggs ready for sale.
• Labour (national minimum wage increase 7%)
There are significant labour shortages in a wide range of industry roles; on farm, in packing stations and egg processing plants. This has led to significant wage inflation, which will also increase with the rise in the National Minimum Wage
• Energy (increase of approximately 40%)
The wholesale cost of gas from suppliers has increased by 250% since the start of 2021 and with Britain generating around a third of its electricity from burning natural gas, electricity costs are also increasing.
• Packaging (increase of approximately 15%)
Figures from letsrecycle.com show that the cost of recycled paper, which is used for packaging, has increased by 50% in the year to August 2021, while energy costs, a key component of the manufacture of packaging, are also seeing record increases. Prices of egg packs have risen by more than 15% since November 2021.
This week the government lifted the mandatory bird housing measures linked to the UK’s “worst ever” avian flu outbreak which should offer some relief to an egg sector The Grocer reported:
'But while free-range eggs will make a “welcome” return to shelves from next week, BFREPA warns the tentative end to the disruption caused by latest bird flu outbreak pales in significance to the financial difficulties faced by producers. As The Grocer reported last week, a poll of producers by the trade body found 51% of free-range and organic egg farmers were considering exiting the industry due to the “devastating consequences” of the soaring cost of production on farmers.'
Do you bake with free range eggs? How has the avian flu outbreak impacted your bakery and how will you navigate a cost increase of yet another ingredient?
In our recent new article Why Should I Invest in My Bakery? we look at the many ways in which investing in the correct bakery equipment can enable you to have happier customers and increase your turnover:
The correct equipment increases efficiency by reducing preparation time.
Selecting the correct equipment ensures a higher bake success rate, reducing waste and cost.
Choosing equipment carefully enables you to broaden your product offer and attract new customers.
The correct equipment can enable a more efficient bakery layout, allowing for smaller premises and reduced real-estate costs.
Hopefully at a time when ingredient costs have spiralled you can invest wisely and increase your profit as well as your turnover.
We would be fascinated to talk to you about your bakery and would love to feature an interview with you on our News Page, if this is something you are interested in finding out more about please email hello@methodcommunications.co.uk