The National Farmers’ Union (NFU) is calling for an urgent investigation by the Department for Environment, Food and Rural Affairs (Defra) into the egg supply chain.
The union said yesterday (Monday, November 21) that the department should consider administering an “exceptional market conditions” declaration under the Agriculture Act 2020.
A declaration under section 20 of the act would enable Defra to use its statutory powers to provide support to “egg producers whose livelihoods are under threat”, the union said.
The NFU said this call follows the “severe disruption which egg producers and UK consumers are experiencing”.
NFU president, Minette Batters, said: “There are a huge range of issues facing the poultry sector, in particular within the egg supply chain, which have built up over months and which we have been warning of for some time.
“Energy price inflation and supply chain disruption have added to the worst outbreak of avian influenza (bird flu) yet. However, these pressures alone cannot explain empty shelves.”
Egg production
Batters said the NFU raised concerns about the functionality of the supply chain with Defra a number of months ago.
“The NFU raised concerns about the functionality of the supply chain with Defra a number of months ago in the hope of avoiding the situation we have now, with some retailers having to limit UK consumers’ access to eggs,” she said.
“This is surely a prima facie case of severe disturbance to an agricultural market.”
Since 2019, the cost of feed raw materials has risen by 90%, as measured by the NFU feed raw material index, which doesn’t include manufacturing cost of feed.
Egg prices as measured by Defra (average packer to producer prices) have only increased by 35% in comparison, the union highlighted.
“It is critical that Defra acts now to investigate the issues in the egg supply chain so that any declaration under section 20 can be made as soon as possible,” Batters said.
“Poultry and egg producers must have the confidence they need, working within a fair and transparent supply chain, with fair returns for farmers, so they can do what they do best: Meet demand from shoppers for quality British eggs and poultry meat.”
