national egg shortage has sent retailers and consumers scrambling as egg farmers face both uncertainty over legislation covering free-range eggs and claims of the same price squeeze facing the dairy industry.
Brian Ahmed, the president of the Victorian Farmer’s Association’s Egg Group, told SmartCompany egg farmers are having “almost exactly the same” experience as the milk industry with price cuts.
Ahmed predicts the prices of eggs are likely to rise up to 30 cents a carton for the next three months and shortages are already leaving supermarket shelves at the start of the cooler winter months, which usually causes a dip in supply.
“Coles and Woolworths are trying to sell eggs for $4 a carton and they have to realise they can’t do that and pay the farmer,” he told SmartCompany.
“It’s unviable to produce. They have to learn they just can’t do it.”
Ahmed says the challenges facing egg farmers have not gained as much traction as the plight of Australian dairy farmers as the egg industry doesn’t have the central voice the milk industry does – and egg producers that speak out are at risk of losing contracts with big supermarkets.
“They’ll just stop buying your eggs. And once you’re up to the level of supplying a supermarket, there aren’t many more people you can sell to,” he says.
A spokesperson for Wooloworths told SmartCompany “all major food retailers are experiencing an egg shortage, which is particularly felt in the southern states due to seasonal factors given the colder weather impacting on supply”.
“In addition, recent government changes to the definition of ‘free range’ is placing pressure on all egg ranges as producers adjust to these new labelling requirements,” the spokesperson said.
Woolworths played down suggestions egg producers were facing the same problem milk producers are, with the spokesperson saying “our pricing of egg products enables us to respond to our customers’ demand for value”.
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