January 5, 2009
UK retailers urged to work with egg producers
UK's retailers should work with egg producers instead of taking the short-term approach of maintaining large margins at all costs, according to Peter Kendall, president of the National Farmers Union (NFU).
Kendall said there is a need for more regulation and a balance of trade between retailers and producers.
Maintaining large margins is short-sighted and the retail sector should not go down that way, he said, adding that the short-sighted behaviour could prevent producers from investing in their businesses for the long-term.
Producers had been upset over the recent free-range price cuts, with Noble Foods chief executive Peter Thornton partly blaming retailers for the drop in prices.
Sales of free-range eggs in the third quarter of 2008 increased 30 percent on-year, signifying a change in consumer trend and the retailers and producers could capitalise on that, said Kendall.
He said the changes in stocking density increase the potential to raise production.
The key factor is how the UK handles the removal of battery cages from 2012, and the message that the UK can accomplish that by 2010 has been taken to the government, while the rest of the EU will not be there by 2012, he said.
