More egg packers announce price increases

30-11-2012 | | |
More egg packers announce price increases
More egg packers announce price increases

More egg packers have increased the prices paid to their producers following the decision by Noble Foods to pay more for free range starting from 24 November.

Noble Foods announced an average 5p/doz increase, following “protracted negotiations” with its customers. So-called “value-added” pools – groups of farms which feature range enrichments for specific customers – would take the largest increase, 5.6p/doz. Generic “non-aligned” pools would receive a 4.5p/doz increase.

Scotland’s largest packer, Glenrath Farms is also raising its free-range egg price by 4p/doz, following a 3p/doz rise in October. Company director John Campbell said that it had to respond to higher feed costs and, though it was in talks with retailers to increase prices, the market would ultimately decide. He said that, at a time where demand had fallen for free range, he “could not understand why some packers were still expanding”.

Stonegate announced a 3p/doz increase on all standard free range from 18 November. A letter sent to its producers said the firm understood the pressure that rising feed raw materials costs had placed on them. It acknowledged that “unfortunately the market had not responded”, adding that the firm hoped to pass any savings back to the producers in due course.

“The negotiations with many of our customers have been the most difficult any of our senior team have ever witnessed.” Said Nobel Foods farms director Tom Willings

Meanwhile, Oaklands Farm Eggs said it would increase the premium for large eggs to 15p/doz above medium, in anticipation of a potential shortage. It is understood Oaklands is funding this increase itself, saying that at this point retailers had not increased the prices they paid for eggs. Company director Elwyn Griffiths said that the firm was taking a “long term approach” to keep supply stable.

“We’re putting our money where our mouth is,” said Mr Griffiths. “In times of high feed costs, producers cut back on feed and smaller eggs are produced.”

Kent packer Fridays has also announced it is increasing producer prices by 5p/doz on all grades. A spokesman said it was also its cutting collection charge altogether, a further saving of up to 3p/doz for some producers.

And Leicester firm Sunrise Eggs has announced an average increase of 5p/doz on all eggs, including cage eggs, though with different rates for different pools.


Source: Poultry World