The Welfare of laying hens directive, which came into force on 1st January, has resulted in a contraction in egg availability in some countries; French pastry makers last week said their industry risks slipping into crisis due to the falling availability of cage eggs, as non-compliant producers begin to shut down amid pressure from the European Commission.

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The free range egg sector has been struggling for over a year, with producers suffering poor returns and rising input costs as a result of oversupply in the free range market. However, analysts have said the new Laying Hens Directive could lead to increases in the price of cage and barn eggs, providing some respite and an increase in demand for free range producers.

In order to maintain egg supplies in the long term, to support industries affected by the widespread non-compliance with the cage ban, free range producers may be able to fill the gap. This year it was revealed that half the eggs in Britain were produced in from systems which do not use cages, hailed as a step in the right direction by animal welfare groups.

NFU poultry board chairman Charles Bourns said the industry needs to be able to invest in the future. He commented on the situation, “Egg producers have responded to both legal requirements and market demand over the years by converting to new enriched cages and free range production, making significant investments in the process.

“We know the market has been affected by oversupply until recently, but there are very clear signs it is now on the turn. Free range producers need to see a significant increase in the price they receive that reflects the cost of production and allows future investment and innovation in businesses in the future.  As it stands, the majority are making a loss and this is now unsustainable. Retailers in particular need to think about the long term security and future supply of British free range eggs and avoid the risk of irreparable damage being done to the free range egg supply base by not getting the market signals right now.”

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