Page 4 - National Poultry Newspaper

Egg producers are praying for grain prices to fall, while some grain growers are praying for rain.
A RECENT report on ABC Rural News re- vealed just how tough the going has been for egg producers, with all being victims of escalat- ing feed grain prices.
Some indications are these input costs have doubled in the past six months, while farmgate returns have declined by perhaps 20 percent.
Egg Farmers of Australia chief executive John Dunn was quoted, saying he’d seen feed prices rise by 40 percent since February.
“I think in February feed was selling for about $250 a tonne and today you are looking at $450,” Mr Dunn said.
“For a standard 700g of a dozen eggs, that means to get those 12 eggs into the carton, farmers are
having to spend 20-30 percent more.
“Egg farmers, like a lot of other farmers around the country, are doing it very tough.”
The report then turned to producers like Chris Galvin, a small-scale free range egg producer run- ning 1200 hens at his Ba- jool property in central Queensland, who said it was difficult staying com- petitive.
He said the cost of grain had skyrocketed, with some having to be sourced from South Australia.
Mr Galvin said he was making changes to his op- eration to cut production costs and had bought an egg handling machine to cut labour costs and was also considering buying an egg washing machine to reduce wastage.
Third-generation egg farmer Danyel Cuci- notta of LT’s Egg Farm, Werribee, Victoria, runs 18,000 hens and said she had seen the cost of pro- duction increase by at least 30 percent.
She said feed was a ma- jor component of their production costs, with free-range chickens re- quiring more feed be- cause they moved around more and therefore need- ed more energy.
“As an example, 18,000 hens in one shed, in 10 days will chew through 25 tonnes of feed,” she said.
Despite farmers experi- encing an increase in cost of production, which is reducing their farmgate returns, there is no sign of wholesale price increases
Cant Comment by BRENDON CANT
and consumers are una- ware of the challenges egg producers face, according to ABC reporter Jessica Schremmer.
Ms Cucinotta said ide- ally egg producers should be increasing the price for their produce.
“In the box market, we have the flexibility to slightly increase our prices for eggs, however, those farms that are con- tracted with the major su- permarkets have massive concerns,” she said.
“Price wars at supermar- kets cause a reduction in price, which in turn means the farmer has been paid less for a product, which is costing at least 30 percent more to produce due to the drought.”
Meanwhile, a Wool-
worths spokesperson told the ABC it sold a wide selection of eggs at dif- ferent price points to meet the different needs and budgets of customers.
“While the shelf prices for barn and free range eggs have remained rela- tively stable over the past 12 months, price points can vary in weekly spe- cials and other promo- tional campaigns,” the spokesperson said.
“We will continue to focus on providing great value for our customers while ensuring a fair price for our farmers.”
A Coles spokesperson said the supermarket’s branded free-range egg prices had remained the same for more than 12 months, with the last price decrease in July 2017.
An ALDI Australia spokesperson said the everyday price of ALDI’s eggs had remained con- sistent throughout 2018.
ALDI temporarily re- duced the price of some eggs once this year “to assist our suppliers dur- ing periods of significant surplus”.
“While the industry as a whole is experiencing sig- nificant surplus, we have worked closely with our suppliers to ensure they are financially supported through this period,” the ALDI spokesperson said.
“Any price reductions have occurred in consulta- tion with our suppliers to ensure the best outcome for all parties.
“While we pride our- selves on our ability to provide customers with
excellent value, we do not support the introduction of pricing levels that put pressure on the supply chain.
“Instead, we can offer reduced prices as part of our streamlined opera- tions and reduced over- heads.”
Mr Dunn said it was un- likely consumers would see an increase in egg prices at the checkout but there were plenty of challenges at the farm gate as produc- ers grappled to continue to stay viable during the tough times of drought.
For producers it was less a question of staying com- petitive and more a ques- tion of surviving.
“Some of the smaller farmers in Queensland, they would be struggling because they don’t have the volume and would be forced more quickly to consider whether they can remain in the industry, which is a great pity and big loss,” Mr Dunn said.
“That’s creating a very difficult dynamic for many farmers, who are running their eye over the bottom line and wonder- ing how they can make it work and make it sustain- able for the next genera- tion.”
Note: Jessica Schrem- mer is the acting rural reporter for the ABC Cap- ricornia, based in Rock- hampton.
She grew up in a small German farming town near the Black Forest be- fore moving to Australia.
Jessica began her career reporting for the Chin- chilla News.
The ABC of egg production spells it out
Danyel Cucinotta of LT’s Egg Farm, Werribee, Victoria.
POULTRY RENDERING

transportation from farm and processing services for spent birds from New South Wales, Southern Queensland and Victoria.
CONTACT
Jason Graham 0428 149 704
jason.graham@manildra.com.au
manildra.com.au @manildra
Page 4 – National Poultry Newspaper, September 2018
www.poultrynews.com.au