Egg price drop

Daniel

Member
Isn it taking the risk out the job? Surely free market egg price is low at the moment and feed prices high?

If the market worked properly, we would have all seen price increases last year due to the Fipronil scandal, there were no eggs about, wholesale prices were high and so the producer should have seen a benefit.

We didnt because the market is rigged by these tracker contracts. Someone made a killing from it....

Likewise if feed prices drop then the whole market is expected to take an egg price cut. Why? Because the tracker price contracts get a cut so they can't leave us free market producers on a higher price can they?

Also, these tracker price contracts dictate that you buy your feed from nominated feed mills, generally owned by, or paying a 'commision' to, the packer, who are always charging £20-25/t over the market feed price, so really most tracker producers have given away 5p/doz on their feed before they start.

And now we find there are rumours of the packers cutting the tracker prices even as feed prices rise?! Coupled to the fact another packer is telling its producers that instead of depopulating at 76 weeks as planned, they now have to depopulate at 72 weeks. Which means standing the shed empty for a month, in effect a big price cut.

The deals are rotten and producers have signed up to them like sheep....
 
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franklin

New Member
I hope all these new producers with posh new sheds and very big loans can finance the job when it all goes wrong. Which it will soon!

Perhaps they will all sit down together and convince supermarkets not to buy from folk with older sheds? They could just say they would do the job for a penny less if the supermarkets dump everyone else? It does work both ways. And those with big borrowings will always have to keep the £££ coming in no mater what industry they are in.
 

7610 super q

Never Forgotten
Honorary Member
Is this across the board ? Free range and organic and Clarence Court eggs ?

They tried a major cut in the organic egg price in 2011 due to falling sales. In the end they decided it was less hassle dropping producers in far flung places.......:(
 

Frodo

Member
Location
Scotland (east)
I'm sure they've written themselves a nice loophole into the small print!

I still can't get my head round why anyone would think a feed tracker would ever benefit anyone but the packer/retailer.
I've never been tempted, but figures in the ranger do suggest people on them have been better off for last year.

Totally agree with you about failure to pass on extra during filprinol. A short term temporary blip in egg price it may have encouraged more unneeded expansion, but would definitely off reduced my overdraft.

Surprised at early depop given the market is short of large egg.
 

D14

Member
How can feed be reduced when we are going into a harvest with around 35% yield reduction? What I can see is a reduced egg price but increased feed price!
 

ski

Member
It's 4p on large and 10p on mediums, and it's on tracker contracts
Has there been a letter or announcement?

If you are correct, then the core principal of the tracker has been abused. I would consider it fraudulent if buried within its terms was a 'get out' clause, moreover, a contract which is designed to provide a mechanism for pricing and contains a clause to avoid that mechanism would, I believe, be deemed unlawful by any court. This is not force majeure.
 
Has there been a letter or announcement?

If you are correct, then the core principal of the tracker has been abused. I would consider it fraudulent if buried within its terms was a 'get out' clause, moreover, a contract which is designed to provide a mechanism for pricing and contains a clause to avoid that mechanism would, I believe, be deemed unlawful by any court. This is not force majeure.

Just rumours i hear from a Neighbour,
I asked him if he was on a tracker and he said yes, but the contract is pretty loose
 

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