March 2, 2007

Feed costs raise egg prices

A dozen eggs are likely to cost shoppers an extra 20-30 cents, as the price of poultry feed continues to rise.

Feed grain prices have risen almost 80 per cent over the past 12 months.

Tasmanian egg producer John Groenewold says the price hike is a combination of the drought and competition for grain from the biofuels industry.

Groenewold says the decision to produce ethanol from grains has driven up grain prices worldwide.

He said that US$50 per tonne has probably been added to the price of grain.