28/02/2011

Research shows supermarket eggs are creeping up in price and now cost more than 30p each.

A box of six free range eggs costs an average of £1.80 at many major stores, and is likely to rise further.

Farmers' groups have warned that the industry is in crisis as prices are failing to keep pace with spiralling overheads.

This is partly down to a steep rise in the cost of chicken feed.

It is 70% wheat and about 12.5% soya and makes up 60% of the cost of producing eggs.

Prices rose by 70% last year after Russia introduced an export ban on homegrown wheat after a series of droughts.

Poultry farmers are also being forced to end the practice of rearing hens in battery cages, ahead of an EU ban that comes into force in 2012, and are required to use only non-GM feed by supermarkets. These factors mean producing eggs costs more.

Supermarkets are now passing the rising prices on to customers and many ownbrand eggs cost 30p each.

A box of six Sainsbury's mixed woodland free range large eggs works out at 33p an egg, while six Tesco happy egg free range large eggs cost 30p each. Waitrose sells six Columbian Blacktail free range large eggs for 30p each and six Burford Brown free range eggs for 33p each.

The increased prices come at a time when consumers are facing the biggest squeeze on living standards in 90 years, caused in part by the VAT rise which was introduced last month.

A study by the British Retail Consortium found that the rise in food prices between December 2010 and January this year was the biggest monthly increase in two years.

And the UN Food and Agriculture Organisation has said that global food price rises are running at a record high, partly due to growing demand for meat from Asia and the Middle East.

Eggs have already increased steeply in price over the last five years. Half a dozen Columbian Blacktail free range medium eggs from Waitrose cost 95p in 2006, making them 16p each. The same box now costs £1.58, meaning each egg costs 26p.

Sainsbury's has increased the prices of three of its major egg brands. A box of six Sainsbury's free range woodland large eggs has just gone up by 5p to £1.68, while ten happy eggs have risen by 24p to £2.83.

Egg producers are facing the 'worst trading conditions we have ever seen', according to the British Free Range Egg Producers Association. Chairman John Retson said he feared many would be forced out of business without further price rises.

He recently wrote to major supermarkets explaining the problems facing egg producers and asking them to offset the huge increases in costs hitting farmers.

Rob Newbery, the National Farmers Union's chief poultry adviser, is also concerned about increased costs for egg producers. 'We will be saying that eggs are just going to have to be a bit more expensive now,' he said