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Egg Products Prices Set To Soar

The British Egg Products Association (BEPA) has warned that food manufacturers and caterers can expect further significant price rises for egg products over the next few weeks due to the spiralling costs of egg production and strong demand.

The pressure on the egg products market has been largely caused by the increasing cost of raw materials, which have been driven up by extraordinarily high wheat costs.
The cost of feed accounts for around half the cost of egg production and has nearly doubled this year. Wheat prices have risen as a result of the poor harvest across Europe, increased global demand for cereals for biofuels and increased meat consumption in developing countries. World cereal stocks are at record low levels.
Strong consumer demand has exacerbated the problem with retail egg sales up by more than 3% this year and demand for egg products continuing to rise in line with the traditional seasonal uplift.
As a consequence food manufacturers and caterers are facing price rises of around 50%. “The dramatic increases in feed costs, coupled with a shortage of eggs for processing, have meant that we are having to pay far more for eggs than we have done in the past. The price rises are needed in order to guarantee supply to all our customers in the short to medium term,” said Clive Frampton, Chairman of the British Egg Products Association.
The statement by the British Egg Products Association comes on top of warnings from a number of egg producer groups that the price of shell eggs will have to rise

Posted on: 09 March 2009

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