British egg producers are warning of possible shortages, as farmers leave the industry or reduce the size of their flocks in the face of spiralling costs and uncertainty sparked by the spread of bird flu.
A third of farmers surveyed in recent days by the trade body the British Free Range Egg Producers Association (BFREPA) reported they had reduced the number of hens in their flock because egg prices meant they were unable to cover their costs.
Meanwhile, a quarter of the 165 farmers who responded told the BFREPA they had stopped production either temporarily or permanently.
Farmers have been grappling with soaring costs, including the price of feed for their hens, as well as higher energy and transport bills.
The association represents about 550 egg businesses, who account for about 70% of the UK’s free range and organic egg production, supplying the country’s largest retailers.
Several of those surveyed who had reduced their flock said they were “seriously considering not restocking”, while another farmer added “trying to cut costs to survive”.
In March, the egg industry called on the UK’s big retailers to increase the price of a dozen eggs by 40p to prevent the collapse of hundreds of egg producers.
The BFREPA said the average price of eggs had since increased by about 45p, but only a quarter of that – between 9p and 10p – had been passed on to farmers, which was not enough to cover their higher costs.
The egg industry body, the British Egg Industry Council, said cost pressures had led to a temporary reduction in the size of the British flock, but it expected numbers to increase again as cost pressures ease.
It said the pressure on egg supply had been caused by several factors: “These include hens lost as a result of avian flu; cost of production rises, which mean that producers are struggling to break even; a reduction in the number of colony hens as retailers move towards cage free; and strong demand from consumers.”
The council added the industry was working closely with retailers to ensure that producers can meet consumer demand.
The Guardian understands that supermarkets are not facing immediate egg shortages.
Andrew Opie, the director of food and sustainability at the British Retail Consortium, said retailers were managing their supply chains and continuing to “work hard to ensure minimal impact to customers despite ongoing supply chain pressures”.
The cost pressures come as producers are coping with the UK’s largest-ever outbreak of avian influenza, raising concerns about reduced output. Keeping hens indoors also leads to additional costs for farmers.
The outbreak, which has been running for more than a year, has accelerated in recent weeks, with nearly 100 confirmed cases of bird flu H5N1 since the start of October.
Officials have said the disease circulates among wild birds, but it is deadly for captive birds including hens and turkeys. Any outbreak is also devastating for farmers as it prompts a cull of any remaining birds on site.
In an attempt to curb the spread of avian influenza, poultry and other captive birds in England are required by law to be housed indoors for an indefinite period.
A prolonged housing order may also lead to free range eggs having to be relabelled for sale.
UK law states that eggs can still be marketed as free range for the first 16 weeks of a housing order; if the hens are still required to be kept indoors after that time, the eggs will need to be relabelled as “barn eggs”.
