The Australian Egg Corporation
says sudden hikes in grain prices have left farmers absorbing high production costs – with grain being the single biggest variable cost to egg farmers.
The corporation’s managing director, James Kellaway, said unless there was a change in weather conditions soon, egg farmers were likely to see further increases in the price of all grains.
â€œIn recent months, forward wheat contracts have risen from around $180 to $310 per tonne,â€ Mr Kellaway said in a statement.
This current price increase translates to 20-30 cents extra per dozen eggs, with prices now reaching import parity.
This will leave egg producers unable to compete with flour millers and other grain buyers if egg prices remain static.
â€œFarmers have been struggling for some time to absorb these increasing production costs and keep prices as low as possible for consumers,â€ Mr Kellaway said.
â€œBut with margins virtually non-existent, egg farmers are now at breaking point and will have little choice but to pass on these costs.â€