October 4, 2007

New Zealand's eggs to become pricier as grain prices rise

New Zealand's egg prices are set to rise as grain prices go up worldwide.

The cost of producing a dozen eggs has shot up by US$0.40 - around 20 percent due to the rise in grain prices the last few weeks.

Egg farmers exist on slender profit margins and unfortunately cannot continue to insulate consumers any longer, said national marketing body Eggs Incorporated chairman Dennis O'Meara.

Another major egg producer and chairman of Independent Eggs Producers, Ron Turk, said more wheat, corn and other grains were being sought by food manufacturers at the same time land was being diverted to biofuel crops, while droughts were making grains more expensive in Australia.

Wheat has doubled in value on the world market since April, reaching US$9.1125 ($12.96) a bushel on commodity markets.