London Daily

Focus on the big picture.
Saturday, May 31, 2025

Britain’s broken egg industry shows the price of food inflation

Britain’s broken egg industry shows the price of food inflation

In Britain, the damage wrought by rampant inflation can be seen in the fate of the humble egg.

With war in Ukraine driving energy and chicken feed costs higher, farmers say what they get paid is no longer enough, upending the economics of a key food staple.

Many of the country's supermarkets, including market leader Tesco (TSCO.L) and No. 3 Asda, have rationed sales, blaming the bout of bird flu that has ravaged flocks across Europe and the United States and, they say, led to a British shortage.

But British farmers argue that while the outbreak is a factor, there are not enough eggs because they lose money on every box sold, forcing many to cut production and some to quit altogether.

"The stupidity of the whole thing is that we warned retailers, we've given them plenty of notice this was going to happen," Robert Gooch, chief executive of the British Free Range Egg Producers Association (BFREPA) told Reuters.

The association estimates the total UK laying flock has fallen 6% to 36.4 million over the past 12 months, suggesting even tighter supply ahead.

Frank Thompstone says that last year he cut the number of free range hens at his farm in Burton-on-Trent, central England, to 24,000 from 36,000 to limit his losses. By October he had had enough, giving the required 12-month notice on his contract with his buyer.

The buyer, who packs and sells the eggs to supermarkets, offered 15 pence per dozen more in response, which Thompstone says still leaves him with a loss.

"Why would we commit to that?" he told Reuters. "I'm aghast frankly. It's the retailers that hold the purse strings."

Driven by consumer demand, British egg producers have for years focused on free range, which now represents 70% of the market. But with only 13% of eggs in the European Union free range, the option to fill the gaps on UK supermarket shelves with imports is limited.

Britain's National Farmers Union (NFU) says the eggs shortage could be just the beginning, as the new era of costly energy and grains combined with labour shortages could bring more empty shelves unless food producers and retailers agree fairer terms for the future.

While double-digit inflation has strained the relationship between producers and retailers across the globe, intense competition among British food retailers has kept prices below European averages and their profit margins among the lowest around.

That, combined with a cost-of-living crisis fuelled by soaring food and energy costs, limits their room for manoeuvre, retailers say.

Yet egg producers say that while the supermarkets have raised retail prices and paid farmers more, that increase is not enough to cover exploding costs.

The NFU says that while British producers are being paid 35% more for their eggs than in 2019, the cost of chicken feed raw materials has surged 90%.

Official UK data shows retail prices for eggs have increased 27% over the last year alone.


'TOLD YOU SO'


According to BFREPA, it costs a farmer about 138 pence to produce a dozen eggs. But buyers are only paying around 109 pence while retailers are selling them for between 219 and 410 pence.

Ballooning costs and bird flu have hurt farmers across Europe, with global egg production expected to fall for the first time ever this year, according to the EU's largest producer, French group CNPO.

Some 750,000 UK birds have been culled due to bird flu and there is no guarantee they will be replaced, but more may fall victim to financial pressures.

Daniel Brown, whose 44,000 hens lay 40,000 eggs a day at his farm at Bury St Edmunds in eastern England, says a recent 18 pence per dozen price increase offered some relief, but he was still not breaking even.

"We explained clearly to the retailers why the price needs to go up, what the cost increases are, what the consequences will be and they just ignore you," he told Reuters. "And then it plays out.

"It is basically 'I told you so', but it doesn't give you any satisfaction."

Last month Tesco, Aldi and Waitrose between them said they had provided an additional 29 million pounds ($35 million) of support to the egg industry.

The British Retail Consortium, which represents the supermarkets, says they recognise the need to pay a sustainable price to farmers, but say they are also facing higher costs.

Brown said he will decide by April 2023 whether it is worth re-stocking birds for another production cycle but warned industry capacity won't improve any time soon.

"If the retailers were to come to the industry today with a brilliant offer and say 'have another 70 pence a dozen', it would still take six to eight months to rear enough birds to replace those that have been lost," he said.

($1 = 0.8216 pounds)

Newsletter

Related Articles

0:00
0:00
Close
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
U.S. Justice Department Reduces American Bar Association's Role in Judicial Nominations
U.S. Department of Energy Unveils 'Doudna' Supercomputer to Advance AI Research
U.S. SEC Dismisses Lawsuit Against Binance Amid Regulatory Shift
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
Italy Faces Population Decline Amid Youth Emigration
U.S. Goods Imports Plunge Nearly 20% Amid Tariff Disruptions
OpenAI Faces Competition from Cheaper AI Rivals
Foreign Tax Provision in U.S. Budget Bill Alarms Investors
Trump Accuses China of Violating Trade Agreement
Gerry Adams Wins Libel Case Against BBC
Russia Accuses Serbia of Supplying Arms to Ukraine
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
Chinese Woman Dies After Being Forced to Visit Bank Despite Critical Illness
President Trump Grants Full Pardons to Reality TV Stars Todd and Julie Chrisley
Texas Enacts App Store Accountability Act Mandating Age Verification
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Vatican Calls for Sustainable Tourism in 2025 Message
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Trump Threatens 25% Tariff on iPhones Amid Dispute with Apple CEO
Putin's Helicopter Reportedly Targeted by Ukrainian Drones
Liverpool Car Ramming Incident Leaves Multiple Injured
Australia Faces Immigration Debate Following Labor Party Victory
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
Macron Dismisses Viral Video of Wife's Gesture as Playful Banter
Cleveland Clinic Study Questions Effectiveness of Recent Flu Vaccine
Netanyahu Accuses Starmer of Siding with Hamas
Junior Doctors Threaten Strike Over 4% Pay Offer
Labour MPs Urge Chancellor to Tax Wealthy Over Cutting Welfare
Publication of UK Child Poverty Strategy Delayed Until Autumn
France Detains UK Fishing Vessel Amid Post-Brexit Tensions
Calls Grow to Resume Syrian Asylum Claims in UK
Nigel Farage Pledges to Reinstate Winter Fuel Payments
Boris and Carrie Johnson Welcome Daughter Poppy
×