Urgent warning that the price of EGGS is about to soar in Australia as farmers struggle to keep up with rising costs
- The price of eggs is expected to continue increasing in the coming months
- Egg farmers say there expenses are rising, including feed and packaging
- Eggs are the latest grocery item to soar in price amidst a cost of living crisis
Farmers have warned that the price of eggs will increase even more in the latest cost of a living blow for Australian consumers.
Rising expenses sustained by egg farmers, including feed and packaging costs, will increase the eggs’ prices in supermarkets.
Murphy’s Crossing Free Range Eggs farmer Patricia Simpson told Sky News Australia that costs on her family business had made raising egg prices inevitable.
Farmers have warned Aussie consumers to expect the price of eggs to continue to soar due to rising costs
‘Egg prices definitely have to rise,’ she said. ‘We’ve been absorbing the costs for the last 12 months or more.
‘All our input costs have more than doubled, and we are definitely going to have to put our price up.’
Egg farmers face enormous pressure from rising costs in 2022
Egg Farmers of Australia, which represents the egg industry, says many farmers across the country are struggling with soaring costs.
On the average egg farm in 2022, the cost of started pullets (young laying hens) had increased 20 per cent, fuel prices jumped 25 per cent, feed grain costs rose by 45 per cent, and the cost of canola oil had climbed 141 per cent per tonne.
Drought, flooding, new government levies on farms and mice plagues have also contributed to farmers’ rising costs.
South Australian egg farmer Patricia Simpson (pictured) told Sky News Australia that her family business, Murphy’s Crossing Free Range Eggs, have been ‘absorbing’ costs for at the least the past 12 months
The cost of chicken food is one expense taking a toll on egg farmers which is pushing up egg prices
CEO Melinda Hashimoto said: ‘The speed of rising farm input costs, that are required to raise hens and produce quality eggs, is so alarming that some long-term egg farmers are genuinely fearing for the future of our industry.’
‘It is a reality that Australians are going to have get used to paying more if they want their eggs and other food grown in Australia, or they’ll see Aussie farmers go out of business.’
Some farmers were also carrying huge debt as they prepared to transition from caged eggs and invest in free range egg production systems
‘It’s a serious problem – if we want to continue to enjoy fresh food grown in Australia, such as Aussie eggs, then retailers, wholesalers and consumers must consider paying more to our farmers, so that they can stay afloat and maintain a future supply,’ Mrs Hashimoto said.
‘It is a reality that Australians are going to have get used to paying more if they want their eggs and other food grown in Australia, or they’ll see Aussie farmers go out of business.
‘Likewise, wholesalers such as supermarkets, bakers, food manufacturers, hotels, cruise ships and hospitality sectors are urged to review the price they pay for Aussie eggs, to ensure our farmers get a fair and profitable return on their product.’
The rising costs of eggs is not the only price rise Aussies face as inflation surges.
Eggs are the latest grocery store item to to soar in price, adding further strain on Aussies amidst a cost of living crisis
Australians are already paying 50 per cent more since the start of the year for instant coffee and a 2-litre bottle of Coca Cola, while fresh fruit and veg like tomatoes, carrots and apples up 40 per cent.
Bread, some cooking oils, beef sausages and baked beans have jumped 20-30 per cent.
The cost of living crisis is being triggered by a ‘perfect storm’ of factors in the aftermath of the Covid pandemic and Russia’s bloody invasion of Ukraine.
Power prices had exploded by a massive 141 per cent in the year to March before a bitter cold snap on the nation’s east coast exacerbated the prices surge in the past two weeks.
Fresh vegetables have gone up 6.6 per cent since the start of the year amid surging inflation
What’s going up?
Vegetables: up 6.6%
Fruit: up 4.9%
Soft drinks: Coke 2L – up 50%
Instant coffee: Moccona – up 50%
Cooking oil: Crisco’s sunflower oil up 30%.
Baked beans: up 30%
Spaghetti in tomato sauce: – up 30%
Bread: up 20%
Sausages: up 20%.
Jason Fritsch, the chief executive of fruit and vegetable processor Kagome, said the company were paying $4.50 to $5 a gigajoule before Russia’s bloody invasion of Ukraine and are now shelling out $30 a GJ. The price is set to hit $40 a GJ by June 7.
The company, which produces 200,000 tonnes of tomatoes, 30,000 tonnes of carrots, 10,000 tonnes of apples and 7,000 tonnes of beetroot each year, is expecting to pay 25 per cent more on their gas bill next year.
Kagome has no choice but to pass the extra costs onto the consumer.
‘The one thing that processors and manufacturers have always had access to was a plentiful supply of competitively priced energy,’ Mr Fritsch told the Guardian.
‘We’re at a point now where if your costs continue to climb, it makes it very difficult to continue to operate.’
‘We’d be paying somewhere between $6million and $8million more. It would be a case of ‘shut your doors’ – you’d be making a loss.
‘It’s crazy how much gas has gone up in the past three or four months.’
‘Out of control’ energy prices are driving up the cost of groceries as farmers and food producers warn shoppers will be slugged even more at the supermarket checkout. Pictured: A supermarket shopper in Sydney
War the Ukraine, a major wheat producer, is driving the price of wheat higher (pictured, bread aisle in Woolworths)
The latest Consumer Price Index report from the Australian Bureau of Statistics shows vegetable prices up 6.6 per cent in the first quarter, with the cost of fruit up 4.9 per cent.
Sean Smith, the chief executive of grocery comparison app Frugl says there’s a lot more pain to come for consumers.
‘In terms of looking forward, we don’t see any relief for the rest of the year,’ he told the Sydney Morning Herald.
‘Overall, the prices are going to go up. And that will continue.’
National Farmers Federation boss Ash Salardini, seconded the dire prediction.
‘Don’t expect any drops in the next 12 months. If you see 5-10 per cent increases, don’t be shocked.’
Coles issued a dire warning last month that supermarkets are being forced to rapidly increase their prices as production costs climb.
The price of soft drink including 2L bottles of Coke has skyrocketed by 50 per cent this year
Coles issued a dire warning last week that supermarkets are being forced to rapidly increase their prices as production costs climb. Pictured: Canned food section where prices are up 20-30 per cent
Steve Cain, the supermarket giant’s CEO, said the number of suppliers calling to renegotiate pricing had surged during the past year.
‘As I sit here today, we have got five times as many requests for price increases as we had last year. Five times,’ Mr Cain told The Australian’s Global Food Forum on Wednesday.
‘And they’re not small amounts. It’s not two per cent or three per cent being asked for either so there is, you know, the usual “pig in the python'” trying to work its way through the system, whether things plateau or whether they come down slowly remains to be seen.’
Making matters worse is that transport costs went up by 13.7 per cent as petrol prices rose at the fastest pace since 1990 when Iraq invaded Kuwait.
Woolworths chief executive Brad Banducci, who runs Australia’s biggest supermarket group, earlier this year also revealed the company had already seen price boosts of two to three per cent, with more supplier fee increases expected soon.
However, Woolworths have announced they are freezing the prices of their household essentials until the end of the year.
Woolworths have frozen the price of almost 200 essential products (above) to help Aussies save on groceries amid the cost of living crisis
The supermarket retailer promised customers it will keep pantry, meal, cleaning, and baby essentials the same price despite growing inflation to help Aussies tackle the cost of living crisis.
These essentials include: flour, sugar, coffee, pasta, frozen peas, shredded cheese, bread rolls, bacon, yoghurt, juice, nappies, and laundry powder.
Woolworths CEO Brad Banducci told Daily Mail Australia he was committed to ensuring customers ‘get their Woolies worth’ as food prices continue to soar.
‘The challenges we’ve worked through together in the last two plus years have been unparalleled – from droughts and fires to Covid, floods and supply shortages and now inflation and the pressure on household budgets,’ he said.