FREE RANGE egg producers are demanding a significant and immediate increase in the price they receive to maintain supplies in the long-term.
According to the National Farmers Union, free range have struggled for 18 months amid a background of rising costs, low egg prices and oversupply in the free range market.
However, since January 1 and the introduction of the Welfare of Laying Hens Directive, egg supplies have tightened across the UK and Europe, leading to increases in the price of cage and barn eggs, but as yet no corresponding move in the free-range market.
NFU poultry board chairman Charles Bourns has called on the supply chain to recognise the seismic shift that is taking place right now in the egg market and to ensure that the British free range egg industry retains its ability to invest in the future.
Egg producers have responded to both legal requirements and market demand over the years by converting to new enriched cages and free range production, making significant investments in the process, he added.
Many have borrowed serious amounts of money to invest in new buildings in the run up to the conventional cage ban. Producers have been struggling to meet capital repayments and run profitable businesses. We know the market has been affected by oversupply until recently, but there are very clear signs it is now on the turn.
Free range producers need to see a significant increase in the price they receive that reflects the cost of production and allows future investment and innovation in businesses in the future. As it stands, the majority are making a loss and this is now unsustainable.