Egg farmers across the country are facing closure if egg packers and retailers don’t deliver agreed price increases, the IFA has warned.
In a letter issued this week, the farmers are threatening to export their eggs instead of supplying Irish retailers and are calling out the egg packers for their alleged failure to pay them within 30 days, contrary to Irish unfair trading practice law.
Since a week-long protest concluded at Aldi and Lidl in Cavan town last October, farmers have received an average of just 0.7c/egg from the 2c/egg price increase they sought.
A verbal price agreement was secured at the time between the farmers, packers and retailers and it led to the ending of the protest, which had become one of the longest farmer blockades in recent history.
However, IFA poultry chair Nigel Sweetnam said that “while discount retailers have responded positively following the protests, the same cannot be said for some other retailers, who have failed to meet the producers’ demands”.
The Irish Farmers Journal understands Aldi, Lidl and Tesco have passed back the price increases agreed but that SuperValu and Dunnes continue to drag their heels.
Egg packers
However, it is the “middle man”, the egg packers, who are now failing to deliver the required price increase back to egg producers, says farmer Brendan Soden.
“The egg packers have not followed through. We’ve met them twice and they made promises but nothing has been followed through.
“It’s being dragged on and on and we’re getting nothing. The price is up on the shelf, the consumer is paying more and they’re thinking it’s going back to us but we’re seeing none of it. Someone is pocketing the money,” Soden said.
Egg farmers are looking for a 2c/egg price increase. \ Ramona Farrelly
Ireland’s main egg packers include Greenfield Eggs, Nestbox, Annalitten Eggs, Belview Eggs and Riverview Eggs and they declined to comment on the matter.
Soden, a Cavan egg producer, claimed that these packers have “maintained their margins and have their own costs covered”, leaving their farmer suppliers to “suffer” with rising inputs. He described how his electricity costs have doubled in a year, pullet costs are breaking €6 per bird, when they were €4.50 a year ago, and meal costs are up 40%.
Case study: ‘I just couldn’t carry on’
The margin ‘squeeze’ of rising inputs and stalled egg prices have led one Monaghan farmer to shut down his business despite heavy investment over 20 years.
Egg producers Denis and Mary O’Connell and their dog Susie from Annagose, Newbliss, Co Monaghan in their empty poultry shed. The O’Connells have gone out of business due to the failure of egg packers to pass back price increases to farmers. \ Lorraine Teevan
Denis O’Connell of Newbliss said that while he has a son who would have taken the business on, he couldn’t advise him towards a future in egg production.
O’Connell’s high-spec poultry sheds now lie empty and the 8,000 birds they were once home to are gone.
The farmer said the failure of egg packers and retailers to provide the 2c/egg increase was the “final straw” which led him to stop production.
“My sheds are empty and I just couldn’t carry on. When you take your hens in and pay for your meal, you’re in minus figures. You’ve all the risks.
“We’re being controlled by the retailers and the packers. I didn’t want to start subsidising the eggs for the retailers. They take you for granted.
“Under no circumstances whatsoever am I going to look at putting hens back in,” he said.
Read more
Egg prices rise for consumers but not farmers
Bowler egg producers at breaking point
Egg farmers across the country are facing closure if egg packers and retailers don’t deliver agreed price increases, the IFA has warned.
In a letter issued this week, the farmers are threatening to export their eggs instead of supplying Irish retailers and are calling out the egg packers for their alleged failure to pay them within 30 days, contrary to Irish unfair trading practice law.
Since a week-long protest concluded at Aldi and Lidl in Cavan town last October, farmers have received an average of just 0.7c/egg from the 2c/egg price increase they sought.
A verbal price agreement was secured at the time between the farmers, packers and retailers and it led to the ending of the protest, which had become one of the longest farmer blockades in recent history.
However, IFA poultry chair Nigel Sweetnam said that “while discount retailers have responded positively following the protests, the same cannot be said for some other retailers, who have failed to meet the producers’ demands”.
The Irish Farmers Journal understands Aldi, Lidl and Tesco have passed back the price increases agreed but that SuperValu and Dunnes continue to drag their heels.
Egg packers
However, it is the “middle man”, the egg packers, who are now failing to deliver the required price increase back to egg producers, says farmer Brendan Soden.
“The egg packers have not followed through. We’ve met them twice and they made promises but nothing has been followed through.
“It’s being dragged on and on and we’re getting nothing. The price is up on the shelf, the consumer is paying more and they’re thinking it’s going back to us but we’re seeing none of it. Someone is pocketing the money,” Soden said.
Egg farmers are looking for a 2c/egg price increase. \ Ramona Farrelly
Ireland’s main egg packers include Greenfield Eggs, Nestbox, Annalitten Eggs, Belview Eggs and Riverview Eggs and they declined to comment on the matter.
Soden, a Cavan egg producer, claimed that these packers have “maintained their margins and have their own costs covered”, leaving their farmer suppliers to “suffer” with rising inputs. He described how his electricity costs have doubled in a year, pullet costs are breaking €6 per bird, when they were €4.50 a year ago, and meal costs are up 40%.
Case study: ‘I just couldn’t carry on’
The margin ‘squeeze’ of rising inputs and stalled egg prices have led one Monaghan farmer to shut down his business despite heavy investment over 20 years.
Egg producers Denis and Mary O’Connell and their dog Susie from Annagose, Newbliss, Co Monaghan in their empty poultry shed. The O’Connells have gone out of business due to the failure of egg packers to pass back price increases to farmers. \ Lorraine Teevan
Denis O’Connell of Newbliss said that while he has a son who would have taken the business on, he couldn’t advise him towards a future in egg production.
O’Connell’s high-spec poultry sheds now lie empty and the 8,000 birds they were once home to are gone.
The farmer said the failure of egg packers and retailers to provide the 2c/egg increase was the “final straw” which led him to stop production.
“My sheds are empty and I just couldn’t carry on. When you take your hens in and pay for your meal, you’re in minus figures. You’ve all the risks.
“We’re being controlled by the retailers and the packers. I didn’t want to start subsidising the eggs for the retailers. They take you for granted.
“Under no circumstances whatsoever am I going to look at putting hens back in,” he said.
Read more
Egg prices rise for consumers but not farmers
Bowler egg producers at breaking point
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