The government has pledged to review supply chain fairness in the egg sector, Defra has confirmed, in light of the impact of global challenges on this sector in particular.
The announcement was made following the Farm to Fork Summit at Downing Street yesterday as part of a wider package of measures requested by the food industry.
BFREPA welcomed the announcement, saying egg producers have been trapped in a boom-and-bust cycle for years.
“It is primarily caused by unfair contracts which leaves their businesses carrying a huge amount of risk,” said chief executive Robert Gooch. “The crisis seen in the sector over the past 12 months, as costs of production rocketed but prices paid to farmers stagnated, demonstrated why this intervention is needed.
“BFREPA will be ready to play an active role in the review when it begins, and hopes that the outcome is a fairer, more sustainable supply chain.
Many farms have seen energy bills increase by tens of thousands of pounds while feed costs have risen by 50% or more.
Transport, labour and the cost of pullets have all gone up too, leaving producers struggling to make a profit, or in the worst cases, ceasing production altogether.
Defra Secretary Thérèse Coffey said the reviews aimed to boost “every element of the food supply chain, from farm to fork.”
“I am delighted that today we have embarked on our next step to back British farmers and ensure a thriving food and drink sector,” she said.
“I look forward to working together, right across the food supply chain, to boost growth, innovation and sustainability.”