Daniel
Member
- Location
- Mildenhall, Suffolk
Its was not too long ago you built a new shed for 32000 which you produced as a brilliant thread on here
2015/16, time flies!
But that was our second shed having built the first in 2004, the market was buoyant and we knew what we were doing, with a responsible packer and knowing our costings to the penny.
Since then there has been a gold rush as prices have dropped and build prices, feed prices and every other cost has risen.
Which leads me to conclude that the majority are new producers who either think it’s easy money for not much effort (not true, it takes daily attention to detail 365 days a year).
Or alternatively they have been given figures by a packer which over state production figures and understate costs, added to which, since planning went in for a lot of these sheds, egg prices have been cut heavily.
Feed trackers have added to the chaos, as they’ve been offered to new producers to make out it’s a win:win game, in the same way Sky TV offer the best deals to new customers. Unfortunately the feed trackers have removed the link between supply and demand, so where the egg price would have been cut sooner and more gently to limit production, as feed costs have risen so feed tracker egg prices have risen, and thus production has risen.
Now there is a big oversupply, and the retailers are renegotiating the feed trackers this summer (I believe they were 3 year deals), so I expect blood on the walls, as the feed trackers get renegotiated down to current market prices.