In Britain, the damage wrought by rampant inflation can be seen in the fate of the humble egg. With the 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 have rationed sales, blaming the bout of bird flu that has ravaged flocks across Europe and the United States, 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) said.
- The association estimates the total UK laying flock has fallen 6% to 36.4 million over the past 12 months, suggesting an even tighter supply ahead.
Frank Thompstone says:
- 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. “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
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