The British Free Range Egg Producers Association (BFREPA) has warned that the UK stands to lose a significant amount of its free range egg producers unless market conditions begin to improve. The results of a survey conducted by BFREPA showed around 12 per cent of the country’s commercial free range flock could disappear if producers continue to lose money at the current rate. image expired

The loss would equate to around 2,000,000 layers. BFREPA said that, as raw material prices continue to increase, particularly feed prices, which rose by £70/tonne in the last year, while producer prices are falling, although egg retail prices have risen in 2011.

The latest figures show free range egg producers are currently losing nearly £5 per bird, with losses for organic producers nearer the £6 per bird mark. Industry insiders have expressed fears that the situation could continue into next year.

Tension is increasing in the industry with the news that, from January, eggs which do not meet new EU welfare standards could still enter the UK, keeping prices artificially low for all producers, as some member states may not meet the cage ban deadline and therefore will be able to undercut producers in the states which have.

Free range producers have demanded higher farm-gate prices for their eggs, saying they can only keep producing at a loss for so long. They point out that banks are ‘tightening their grip’ on producers who have extended borrowing and demanding repayments on investment loans. Organisations such as BFREPA are seeking to raise awareness of the problems faced by producers in the hope of returning the industry to a state of profitability.