November 8, 2019
Australia's farmers call for egg prices to increase
Farmers are struggling to feed hens because grain prices have increased from the drought, reported ABC Australia.
Farmers in Australia are hoping to increase the price of eggs supplied to markets and supermarkets as poultry feed prices have doubled, thanks to a poor grain yield from the severe drought happening in the country.
Many of these producers are locked to supply contracts and unable to increase prices, making it hard to make ends meet.
The Egg Farmers of Australia (EFA) have urged supermarkets to stop discounting eggs, pay a reasonable farm gate price to farmers, and draft flexible contracts with farmers.
Melinda Hashimoto, CEO of EFA said producers have to pay more than double for grains then what they used to, while being locked to six to 12 month contracts with retailers.
For Australia's egg farming industry, grain represents 65% of variable costs.
Two Australia supermarkets have paid more to farmers in relation to the drought crisis. While Aldi has passed on the increased costs to customers, it is not known if Coles has done the same.
A spokesman for Woolworths, another major supermarket said they are discussing with suppliers, noting that prices for eggs have gone up throughout the country because of the drought and high input costs.
John Kapiris, director of St Bernards Fruit and Veg Market, a small grocer in Adelaide said consumers are willing to pay more to support struggling farmers, adding that he is ready to increase egg prices to help local farmers' plight.
- ABC Australia