Organic egg supply chain set to collapse
Martin Humphrey Director of sales, Humphrey Feeds
Sir; I read with interest your article on retailer margins across a range of food products ('Price of food rockets 8% as rising commodity costs bite', The Grocer, 2 February, p6). The figure for free-range eggs, at 38%, is considerably higher than we could possibly achieve in agriculture, but I suspect the margin for organic eggs would be higher still. I would question whether such high figures are really valid for organic eggs, bearing in mind the precarious nature of the organic egg supply chain. I am concerned that the organic egg supply chain is on the verge of collapse. It is under enormous pressure due to a lack of organic raw materials and the resultant high price caused by the shortage. While farmers are having to pay escalating prices, the rest of the supply chain is not covering these higher costs.
Martin Humphrey Director of sales, Humphrey Feeds
Sir; I read with interest your article on retailer margins across a range of food products ('Price of food rockets 8% as rising commodity costs bite', The Grocer, 2 February, p6). The figure for free-range eggs, at 38%, is considerably higher than we could possibly achieve in agriculture, but I suspect the margin for organic eggs would be higher still. I would question whether such high figures are really valid for organic eggs, bearing in mind the precarious nature of the organic egg supply chain. I am concerned that the organic egg supply chain is on the verge of collapse. It is under enormous pressure due to a lack of organic raw materials and the resultant high price caused by the shortage. While farmers are having to pay escalating prices, the rest of the supply chain is not covering these higher costs.
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