August 10, 2010

Australia's egg prices may increase on wheat crisis

The Australian Egg Corporation Limited (AECL) has warned that eggs could become more expensive following a Russian curb on grain exports.

The AECL said that grain shortages have an immediate effect on local egg prices, with feed grains being the principal cost for producers.

"This situation could see Australian consumers slugged with an extra AUD0.40-AUD0.50 (US$0.38-US$0.46) per dozen eggs at the point of sale, with no short-term resolution apparent," AECL's managing director, James Kellaway, said.

Russia is the world's fourth-largest producer of wheat, accounting for 9% of global production, and is suffering an ongoing drought. Russia's export suspension is expected to end on December 1.