Egg prices dropping again.

[case 5140]

Would like to get into free range eggs for varying reasons am I mad !
I understand it’s not good at the moment but how bad is it ?
If you’re on a 16000 bird unit with a bowler type franchise ( or any other) are you actually losing dollar ? Or not making as much as you’d like to

Just up the road from me is 2 ex bower franchise farms that no longer have any hens in them at all.....and the 32000 next door left the bowler job a few years ago...another one had planning 9 years ago for another 16000 but never put the shed up, the base is just sat their!.

 

[Frodo2]

but they are promising a 10% return on investment, how can you fall off?

£250k return on £2.5 build cost (think you might be struggling to build a 64k bird site at that and your also forgetting the value of 84 acres of land tied to the project).
So after 10 years you will have got your £2.5 million back but chances are the equipment will be half knackered, the site will have minimal value and you probably be about ready for a refit to keep producing.

Not saying it isnt possible to make money from hens, but it aint all roses, and probably the profitable part of warrendales operation could be "wot a pullet"

Tax and living expenses make paying it back in 10 years even less likely

 

[7610 super q]

Thing is, supermarkets and packers luuuvvvvvve newbies. If you've invested millions in a new setup, you're handcuffed for 20 years aren't you ? And you can't quibble about any new rules/ regs that come along. And you have to accept whatever price is given. Oversupply is heaven to these people. Always a ready supply of newbies to goldmine.

One giant con, IMO. Tin hat on.

 

[maen]

I think your cynical suspicion is very much correct. The egg ‘contract’ needs to have egg price on it. Do we buy electric, derv, wheat etc on a supply only, I will pay what I like once I have taken possession of it. . I think the answer Is NO.
It is the PROBLEM we all face and Is the one that needs resolving for anything like sanity.

 

[6910 Buzz]

The egg job is fecked big time

 

[johnspeehs]

The egg job is fecked big time

if you supply barn eggs to Sainsburys it is anyway

 

[Daniel]

The egg job is fecked big time

if you supply barn eggs to Sainsburys it is anyway

Can you enlighten us further?

 

[johnspeehs]

Sainsburys have said they are stopping stocking barn eggs by march 31 20 20

 

[johnspeehs]

Yesterday’s paper

 

[Daniel]

Sainsburys have said they are stopping stocking barn eggs by march 31 20 20

I thought some cage producers were reconfiguring their shed to produce barn eggs at great expense?

 

[johnspeehs]

Yea well as usual the farmer is shafted yet again, supermarkets have no loyalty to any one but themselves.

 

[yin ewe]

Yea well as usual the farmer is shafted yet again, supermarkets have no loyalty to any one but themselves.

Only a matter of time before the other supermarkets follow them. A lot of caged men might not have enough ground to go free range so barn eggs was a good alternative?

 

[Daniel]

And what will they do, totally free range? How will they offer a budget option?

 

[johnspeehs]

watch out if you,re a free range producer, looks like budget option is coming out of your pocket

 

[midlandslad]

How bad is the free range job at the moment? Is there money to be made building a new shed as there is still plenty going up?

 

[Daniel]

How bad is the free range job at the moment? Is there money to be made building a new shed as there is still plenty going up?

No. At current egg and feed prices there is only a substantial loss to be made.

Either the farmers building sheds have not had realistic costings given to them, or they can’t operate a calculator.

I suppose there is a 3rd option; They know the market is oversupplied and that BFREPA have calculated that the UK has all the production it needs for several years to come, but are gambling on it coming right again. In which case they are too stupid to be allowed to build a chicken shed.

 

[wdah/him]

only problem I see really is when all supermarkets stop cage, barn isn't known much in NI, will people be able to afford free ranch. cage is still a big seller on price. will they only stop selling it under their own brand perhaps or does the market make it illegal for cage after the date.

I would say the catering market is probly a big buyer of cage eggs too which people don't think of, plus liquid, powdered etc.

will a cheaper free range option be a better seller, will people care if the standard of bird life isn't as high but the box still says free range. possibly Sainsbury will show the way in 12-14 months when the cheaper range starts.

perhaps Tesco/asda might move to barn after cage, are barn and free range all rspca assured but cage not, possibly a selling point but then it is few years away off and maybe not much cheaper with requards birds per house

I know quite a few in ni doing the free range and are happy enough, but those who were supplying an English firm I think quite few have stopped, price or contract not as good.

 

[Only]

No. At current egg and feed prices there is only a substantial loss to be made.

Either the farmers building sheds have not had realistic costings given to them, or they can’t operate a calculator.

I suppose there is a 3rd option; They know the market is oversupplied and that BFREPA have calculated that the UK has all the production it needs for several years to come, but are gambling on it coming right again. In which case they are too stupid to be allowed to build a chicken shed.

Its was not too long ago you built a new shed for 32000 which you produced as a brilliant thread on here

 

[6910 Buzz]

Bowler is the only 1 looking more hen houses up. Ud be safer picking chewing gum of the ground all day than picking floor eggs for them for buttons

 

[lloyd]

Too many grant aided sheds in Wales??