“We are not looking for any new producers yet but demand is forecast to keep growing long-term and we may see equilibrium return,” Mr Holt says.Īnyone who wants to proceed should do so only with a firm written contract, he warns.īefore embarking on a development, check with Defra which locations carry a high risk of avian influenza and avoid these areas. National production manager John Holt says that although demand has grown, the influx of entrants means supply exceeds demand. The first step in developing a free-range egg enterprise is to assess the market for the produce and, right now, the market is in a bad place, Mr Gooch says.Ĭontracts are largely based on a guarantee to take a farm’s produce, but not at a fixed price, so the business will be exposed to any declines.Įgg packer LJ Fairburn, which takes produce from almost 60 units in the north-east of England, confirms that the market is well supplied. Allow a budget for range enrichment items.
Remember about 30% of eggs will be medium-sized or smaller and will achieve lower prices. Make sure you budget for feed price increases. Ensure energy prices are known – sophisticated ventilation systems use more electricity. Use realistic costs for cashflow budgets. The drop has slashed profits and many farms, particularly where builds have been funded with bank finance, are finding it tough going. The regular income and lower volatility have resulted in huge growth in free-range numbers within traditional dairy areas, such as Wales and the west of England.īut the increase in supply has seen farmgate prices drop from about 98p/doz in early 2015 to 79.1p/doz in the first quarter of this year. The rate of growth has accelerated in the past three years, largely driven by diversifications that have seen the number of new units rise 12% a year since 2016, says Bfrepa chief executive Robert Gooch.įarmers concerned about financial support after Brexit view the sector, which survives without subsidies, as a more dependable venture. But the sector looks like a victim of its own success.įigures collated by the British Free Range Egg Producers Association (Bfrepa) show that production has rocketed from 15 million hens to 25 million since 2013. See also: Why young farmers should consider getting into poultry Eggs Market outlookįree-range egg consumption has risen by 5-6% a year for the past four or five years and forecasts suggest demand will continue to grow. Buoyant markets have already prompted hundreds of farmers to diversify into broiler and free-range egg productionīut what does it take to set up, and is now the right time, amid serious concerns and warnings of oversupply – particularly in the egg sector? Consumer demand for eggs and poultrymeat have risen steadily over the past 10 years.
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