EGG PRODUCTS PRICES SET TO SOAR

25 September 2007

The British Egg Products Association (BEPA) has warned that food manufacturers and caterers can expect further significant price rises for egg products over the next few weeks due to the spiralling costs of egg production and strong demand.

The pressure on the egg products market has been largely caused by the increasing cost of raw materials, which have been driven up by extraordinarily high wheat costs.

The cost of feed accounts for around half the cost of egg production and has nearly doubled this year.  Wheat prices have risen as a result of the poor harvest across Europe, increased global demand for cereals for biofuels and increased meat consumption in developing countries.  World cereal stocks are at record low levels.

Strong consumer demand has exacerbated the problem with retail egg sales up by more than 3% this year and demand for egg products continuing to rise in line with the traditional seasonal uplift.

As a consequence food manufacturers and caterers are facing price rises of around 50%. “The dramatic increases in feed costs, coupled with a shortage of eggs for processing, have meant that we are having to pay far more for eggs than we have done in the past.  The price rises are needed in order to guarantee supply to all our customers in the short to medium term,” said Clive Frampton, Chairman of the British Egg Products Association. 

The statement by the British Egg Products Association comes on top of warnings from a number of egg producer groups that the price of shell eggs will have to rise.

LION EGG PRODUCTS LAUNCH £100K MARKETING CAMPAIGN

18th June 07

The British Egg Products Association (BEPA) is launching a £100,000 ‘Best of British’ campaign to promote Lion Quality egg products.

Led by a new advertising campaign, producers of Lion Quality egg products will be targeting food manufacturers and catering companies with the ‘Buy British’ message after research showed that imports have grown by 40% since 2001 and more than 50% of food manufacturers were currently sourcing imported egg products.

The research also showed that more than 80% of consumers felt that using British eggs within manufactured products was important, but were unaware that almost a third of these products contain imported eggs. 

Producers of Lion Quality egg products will highlight the benefits of buying British Lion Quality egg products, which conform to a stringent Code of Practice with strict controls on feed, vaccination of hens against salmonella, an increased sensitivity of salmonella testing and more detailed traceability.  The campaign has strong support from several leading food companies, including McDonalds and Tryton Foods, which manufactures Aunt Bessie’s Yorkshire Puddings.

The advertising will be supported with a wide-reaching marketing support campaign including direct mail, food manufacturer and retailer briefings.

Clive Frampton, Chairman of the British Egg Products Association, said, “There appears to be a lot of confusion surrounding egg products and it is this that producers of Lion Quality egg products wish to address.  Once manufacturers, retailers and consumers have the clear facts then the importance of sourcing Lion Quality egg products will become obvious.”

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