What will replace cage as the value egg?

Sunrise Poultry Ltd_17790

Two and a half years since the retailers announced to stop selling colony cage eggs by 2025, it is still no clearer what will replace colony cage eggs as the value egg. The NFU has continued to raise concerns with retailers on what the future will look like for the egg sector.

Click here to see the updated page on retailer’s commitments

The latest Kantar Worldpanel data can give us an up to date picture of the current situation in the egg sector. The data shows cage egg sales account for 34% of egg sales in the 52 week period ending 24th March 2019. This is down 4% on the previous year.

Free range egg sales accounted for 63% of eggs sold in the year ending 24th March 2019, this is up 4% from the previous year.

Figure 2: Kantar Worldpanel retail egg sales - 52 weeks ending 24 March 2019

Retailer

Total sales (000 units)

Barn %

Organic %

Free range %

None Free range %

Total Tesco

1,585,768

0%

1%

56%

43%

Total Sainsbury's

652,313

13%

4%

83%

0%

Total Asda

831,607

0%

1%

64%

35%

Total Morrisons

523,032

0%

1%

69%

30%

Total Iceland

296,330

0%

1%

21%

77%

Total Waitrose

176,455

0%

11%

89%

0%

Aldi

834,215

0%

1%

56%

43%

Lidl

616,616

0%

1%

51%

48%

Budgens

2,633

0%

0%

75%

0%

Total Independents & Symbols

67,080

0%

0%

65%

34%

Total Marks & Spencer

77,282

0%

2%

96%

0%

Currently only Sainsbury’s offer barn egg and sales are in decline in 2017 sales of barn accounted for 15% of egg sales. The average retail price of both cage and barn egg is 10p per egg whereas the average cost free range is 17p per egg. With 35% of consumers continuing to demand a value egg, retailers will have to put plans in place to provide consumers with a value option.

The NFU continues to speak with retailers to raise the following concerns:

  • Planning: Producers need more details to be able to effectively plan and make the necessary changes to their businesses in the remaining nine-year timeframe up until 2025
  • Investment: As a result of the decision to go cage-free a significant number of the 15-million birds housed in enriched cage systems will need housing in alternative production systems such as barn and free range. This inevitably will involve significant investment by farmers as additional housing will be required. This will take time, with planning permission and other factors such as financing factored in;
  • Clarity: What are the alternative production systems, how will the transition to cage free be implemented and over what timeframe?

More links:


Last edited on: 29:04:2019

Share this story:

NFU members: Have your say

Want to share your views? You must be logged in to comment – please login here. Not a member? Join us here.


© 2019 - NFU Online