Large scale egg producers loosing money hand over fist

In the last hour I have heard that large scale egg producers in the area and there are a lot are loosing money hand over fist and there is an empty unit not far away which the owner is trying to rent out.
After Christmas in Lidl a box of 18 eggs could be bought for 79p.
 

traineefarmer

Member
Mixed Farmer
Location
Mid Norfolk
Good.

The greed in the industry has become sickening. Egg prices have been on a downward trend for the last 3 years and all the while the national flock is increasing and falling into the hands of bigger and bigger operators.

The hens on our farm employ a couple of people part time, turn over some cash and produce some useful muck, but they haven't made a noticable contribution to profits in some time. If they're not gone in 5 years I'll be surprised.

The industry's heading toward a painful death of its own making.
 

7610 super q

Never Forgotten
Honorary Member
You could see this was going to happen 7-8 years ago. But you've got to let folks find out for themselves.
When you point out the pitfalls of various diversifications on TFF, you get accused of moaning.Or backward thinking. Or being stuck in your ways.....
I'm glad I'm stuck in my ways rather than having invested ( borrowed ) £1 million to get involved in an over supplied industry.......
Supermarkets / packers must be cock a hoop.
 

delilah

Member
6 companies are responsible for over 80% of UK food retailing.
It is only logical, therefore, that we will arrive at a point where 6 farmers are responsible for over 80% of UK egg production.
Then pork. Then vegetables. Then fruit. Then milk. Then beef and lamb.
Market share is the root of all evil.
 

Dead Rabbits

Member
Location
'Merica
6 companies are responsible for over 80% of UK food retailing.
It is only logical, therefore, that we will arrive at a point where 6 farmers are responsible for over 80% of UK egg production.
Then pork. Then vegetables. Then fruit. Then milk. Then beef and lamb.
Market share is the root of all evil.

A valid observation. Just look over here in the US.
 

Dead Rabbits

Member
Location
'Merica
A conclusion that will be arrived at all the more quickly now that we are the 51st state.

Producing a nameless faceless commodity as a primary producer always seems to result in the same thing. A minority of businesses being highly successful and a majority just getting by or failing.

I guess whatever governmental intervention is applied will limit things but there doesn’t seem to be much difference in outcomes the world over.
 

rhifsaith

Never Forgotten
Honorary Member
Location
Tregaron
You could see this was going to happen 7-8 years ago. But you've got to let folks find out for themselves.
When you point out the pitfalls of various diversifications on TFF, you get accused of moaning.Or backward thinking. Or being stuck in your ways.....
I'm glad I'm stuck in my ways rather than having invested ( borrowed ) £1 million to get involved in an over supplied industry.......
Supermarkets / packers must be cock a hoop.
crickey,you haven't blamed the EU for this...
 

delilah

Member
Producing a nameless faceless commodity as a primary producer always seems to result in the same thing. A minority of businesses being highly successful and a majority just getting by or failing.

I guess whatever governmental intervention is applied will limit things but there doesn’t seem to be much difference in outcomes the world over.

I live in hope that somewhere on this planet there is a community that has seen the need to arrest and reverse the concentration of market share.

As you suggest, it needs Government to 'get it'. Mrs Thatcher - at the height of her privatization frenzy - was told by a wise adviser of hers that "uncontrolled competition leads to a monopoly". She ignored him. Which is why we have seen state monopolies, which for all their faults at least had some degree of political and hence public control, replaced by global corporations answerable to no-one.
 

Sid

Member
Livestock Farmer
Location
South Molton
We nearly invested in a shed 18 years ago. Organic movable.
Block of land came up next door so was a no brainer.
Land value has gone up and up.
Layer shed would be knackered by now.

Think it was right decision and sad to see egg job going bad.

Hasn't the Welsh government piled Grant's into egg units?
 

traineefarmer

Member
Mixed Farmer
Location
Mid Norfolk
We replaced our cages with enriched before the 2012 deadline. Aside from land purchases, it was the biggest capital investment the business had ever made. At the time egg production seem a too important and integral part of the farm not to take the risk and for the first 5 years it seemed we had made the right decision.

In 2018 we reduced our flock by a third and are now using the shed as a potato grading unit and store. The enriched cage equipment, barely 6 years old ( and with a 25 year life expectancy) had no value and has been scrapped.

Getting rid of the rest will now be a lot easier when the time comes.
 

maen

Member
Location
S West
Sadly, egg, and soon Poultry production, have followed a predictable path.

Demand grows, government grants, no price contracts available, price drops, bank loans must be paid, production maintained “at cost” ( or below), customer happy, farmer investment working for less than minimal wage.

The only way to break this cycle is to include an additional clause in the contract - price !

Ever other industry does it. Ask a lawyer!!!
 

SFI - What % were you taking out of production?

  • 0 %

    Votes: 77 43.5%
  • Up to 25%

    Votes: 62 35.0%
  • 25-50%

    Votes: 28 15.8%
  • 50-75%

    Votes: 3 1.7%
  • 75-100%

    Votes: 3 1.7%
  • 100% I’ve had enough of farming!

    Votes: 4 2.3%

Red Tractor drops launch of green farming scheme amid anger from farmers

  • 1,286
  • 1
As reported in Independent


quote: “Red Tractor has confirmed it is dropping plans to launch its green farming assurance standard in April“

read the TFF thread here: https://thefarmingforum.co.uk/index.php?threads/gfc-was-to-go-ahead-now-not-going-ahead.405234/
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