07/02/2012 15:25:03
Chick placings down but why the worry!
The December chick figures showed the national flock was down to a more balanced figure of 32.1 million birds from a running total of 32.89 million birds the previous month and a far cry from the 35 million in January 2011. One may be excused for thinking the future for free range looks a bit rosier going forward. But a rise in prices mid year for struggling free range producers may become a fading dream.
The egg market as a whole seems to be very much near balance. BFREPA have always said that we need to be closer to a national flock of 32 million. With the recent December figure of 2.01 million putting the national flock total to 32.1 million you would think we are close to a price rise most free range producers desperately need. But we must not forget that free range is now being cascaded into colony and it is colony eggs which is tightening the market not free range.
It is expected that any delayed colony systems will be completed and fully housed by the end of February which means that free range producers should all be concerned about what will happen to the cascaded free range once colony eggs can fulfill their own demand. With this and the recession which will inevitably mean that some consumers move down from free range to colony we could still need to lose another million free range birds before we could expect to see any increases in prices.
The recession may stunt the heady rise in free range but more importantly those chick placings need to fall further or free range egg consumption increases before we are likely to see any change to the price producers are paid.
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So we looked stuffed for a rise this year then.
At 07/02/2012 17:40:34Even if some producers leave the business. I know many who are sat with empty sheds waiting for a price rise. When the rise comes it will quickly go back down again.