Egg producers being squeezed.

According to the Farmers Weekly, the British Free Range Egg Producers' Association has warned of the possibility of widespread business collapse, as the differential between retail and wholesale prices widens.

"Free-range egg producers are facing a desperate situation," said John Retson, chairman of the British Free Range Egg Producers Association. "Egg producers have seen the price they receive cut by 5p a dozen. At the same time, since the turn of the year, costs have increased by the equivalent of 15p a dozen because of world commodity prices increasing the cost of feed."

BFREPA's business costings indicate that producers are currently losing more than £6 on every hen, while the association's own surveys show that the prices charged for eggs on supermarket shelves have increased.

A dozen medium free-range eggs cost £2.72 at Asda in May last year. In May this year they were selling for £2.87. At Tesco the price of a dozen medium free-range eggs has similarly increased from £2.72 to £2.87 over the same period of time.

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