Farmers Guradian
Topics
Nine ways to keep your farm vehicles safe

Nine ways to keep your farm vehicles safe

Arable Farming Magazine

Arable Farming Magazine

Dairy Farmer Magazine

Dairy Farmer Magazine

LAMMA 2018

New to Farmers Guardian?
Register Now
Login or Register
New to Farmers Guardian?
Register Now
New to Farmers Guardian?
Register Now

You are viewing your 1 free article

Register now to receive 2 free articles every 7 days
Already a Member?

Login | Join us now

Price war 'shifts from milk to eggs'

Free range eggs are now being used as loss leaders by supermarkets, according to the British Free Range Egg Producers Association (BFREPA).



Twitter Facebook
Twitter Facebook
Share This

Price war 'shifts from milk to eggs'

BFREPA said supermarket promotions are putting more and more pressure on free range egg producers.

 

Robert Gooch, CEO at BFREPA, drew parallels with milk prices.

 

"It is a similar sort of situation. Supermarkets are using free range eggs as loss leaders. There have been a lot of promotions over the last 24 months."

 

As Farmers Guardian reported, experts have warned retailers are preparing for another price war this summer which can directly affect the price a producer receives.

 

Mr Gooch said he was concerned about the long term impact retailers promotions.

 

"Retailers promotions stimulate demand. The producers are then asked to increase production.

 

"When the promotion stops, demand drops and we are then in an oversupply situation."

 

Tesco has recently announced it would be stopping stocking eggs from caged hens by 2025. This follows Sainsbury’s, Marks and Spencer and Aldi making similar commitments. Iceland will also stop stocking caged hens’ eggs by 2025 and there is pressure on other retailers to make similar pledges.

 

Mr Gooch said he is worried this will drive down prices even further. The current cost of production for free range eggs is about 91p for half a dozen.

 

"I am worried if there are no eggs from caged hens then free range eggs will not be seen as a premium.

 

"Iceland was recently selling free range eggs at 50p for half a dozen, way beneath the cost of production and packing."


Read More

Eggs should be considered a ‘super food’, says new research Eggs should be considered a ‘super food’, says new research
Farmers call on NFU to publish milk buyers price performance record Farmers call on NFU to publish milk buyers price performance record
Fears grow of a new supermarket price war Fears grow of a new supermarket price war
Supermarket price wars to blame as number of food producers going bust triples Supermarket price wars to blame as number of food producers going bust triples
Tesco to stop sourcing eggs from caged hens by 2025 Tesco to stop sourcing eggs from caged hens by 2025

Twitter Facebook
Post a Comment
To see comments and join in the conversation please log in.
Facebook
Twitter
RSS
Facebook
Twitter
RSS