By Nick Allen, chief executive, British Egg Industry Council
Defra’s proposals for fair dealings regulations in the egg sector are back on the agenda, with the latest version of the proposals having been released in August. The BEIC remains concerned about this review, noting again that it has limited recognition of the pressures faced by packers and processors in their commercial dealings with retailers.
Defra maintains that relationships between with retailers are sufficiently covered by the Grocery Supply Code of Practice (GSCOP), but the reality suggests this framework typically provides inadequate protection for retail suppliers. The addition of a new body, the Agricultural Supply Chain Adjudicator (ASCA), to oversee producer relationships in the chain, potentially adds further regulatory confusion and bureaucracy into our sector. There needs to be more clarity on how the Agricultural Supply Chain Adjudicator (ASCA) and Grocery Code Adjudicator (GCA) will work together effectively to protect the whole supply chain. As I’ve mentioned before, the consolidation of the ASCA and GCA Adjudicator to create one body, for the whole supply chain, with the powers to address imbalances across the whole supply chain, would be a worthwhile step to resolve this situation.
Looking abroad, the issue of the significant volume of Ukrainian egg imports into the UK continues. After Russia’s invasion of Ukraine the Government removed all tariffs on goods entering the UK. This agreement was extended until 2029 with the exception of eggs and poultry due to their ‘sensitive’ product status, where an extension was agreed until March 2026 instead. There have been requests to extend this to March 2029.
As a sector, we are sympathetic to the situation Ukraine faces and believe it’s right that the UK should do what it can to help Ukraine and its people. Nevertheless, this must be done in a way that does not disadvantage British farmers and undermine our high standards of food safety and animal welfare, that we have worked so hard to achieve.
The BEIC has been engaging with both Defra and DBT to express our serious concerns over these imports. It has been reported that up to thirty lorry loads of Ukrainian eggs a week have been entering the UK market over recent months plus an unknown quantity of liquid egg. At these levels, there is no doubt that Ukrainian imports are having an impact on the market and therefore a significant impact on margins, particularly given that our sector is very sensitive to oversupply situations.
Our understanding is that the vast majority of Ukrainian eggs are from caged hens. In the UK, driven by consumer demand, over 70% of hens in the national flock are free-range. The cost of producing free-range eggs is significantly higher than eggs from cage units. The UK egg sector spent £400m to implement the EU’s Laying Hen Directive, and a further £100m to invest in free-range production.
At the BEIC we reacted swiftly and have made a significant effort to communicate our concerns over these imports. Articles have appeared throughout various trade publications such as The Grocer, The Caterer, and The Staff Canteen, with the following comments: ‘alarm bells are ringing, which could lead to an increase in the type of food safety outbreaks like those seen across Europe’ and ‘we are seeing an influx of eggs produced to lower food safety standards than the British Lion’. The communications have received considerable traction and we will continue to support UK production with this strong messaging wherever possible.