Eggs and Things
Member
- Location
- Scotland
The BBC has reported the imminent collapse of the UK egg market.
Large numbers of farms are apparently not restocking.
8 million fewer hens are on order over this time a year ago.
AI - Yes, but let's not let the retaillers use that as an excuse.
The squeeze/collapse that many in the industry have been warning about for a year may finally be here.
And yet:
The on farm egg price is not increasing as it should if packers were desperate to lock up any available supply.
BFREPA claim there are offers of £1.40 /doz out there.
I would say in response - where?
Is it the case that supermarkets have fixed length / price deals with the packers and so don't need to pay more yet?
Their business model allows them to pay more so long as their competition is also paying more.
So they will just wait until the last minute and only then pay what they need.
The packers meanwhile are stuck with contracts to supply certain amounts of volume with a diminishing supply off the farms.
Will they face penalties if they don't meet their required volumes?
Or is it the case that, against a recent history of oversupply, despite the shouting, there isn't enough of a shortage to produce a significant change in the power dynamic and price?
Or, to be more blunt, there are still too many farms prepare to supply.
Large numbers of farms are apparently not restocking.
8 million fewer hens are on order over this time a year ago.
AI - Yes, but let's not let the retaillers use that as an excuse.
The squeeze/collapse that many in the industry have been warning about for a year may finally be here.
And yet:
The on farm egg price is not increasing as it should if packers were desperate to lock up any available supply.
BFREPA claim there are offers of £1.40 /doz out there.
I would say in response - where?
Is it the case that supermarkets have fixed length / price deals with the packers and so don't need to pay more yet?
Their business model allows them to pay more so long as their competition is also paying more.
So they will just wait until the last minute and only then pay what they need.
The packers meanwhile are stuck with contracts to supply certain amounts of volume with a diminishing supply off the farms.
Will they face penalties if they don't meet their required volumes?
Or is it the case that, against a recent history of oversupply, despite the shouting, there isn't enough of a shortage to produce a significant change in the power dynamic and price?
Or, to be more blunt, there are still too many farms prepare to supply.
