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The market, for some time now everyone has been saying that demand is quiet, but there is no surplus of eggs.
Holland showed a slight increase in price last week, but now Central Egg have broken ranks with some fairly substantial increases led by Free Range which simply aren’t there.
The big retailers have been pushing down prices with there so called price wars especially on Free Range, most people in industry would say that this is the end product of what we would describe as greed in the retailers quest for greater profits to please their city investors.
With the retailers forcing the price down to the packers, this ends up at the producer prices, once that goes below the red line of production costs and you are losing money cut back is the end result.
The commitment and capital investment in alternative systems is colossal, but when you are hurting you can only continue as long as the banks allow.
The chick placing’s for egg production continue to be well below requirements for a healthy industry and the latest chick placing’s for the full EU 27 show a 10% reduction, everyone is hurting, 2 to 5% would be significant 10% would indicate the possibility of empty white shelf space in the poorest paying retailers.
