Demand and Supply in action - Eggs
Monday, February 28, 2011
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The price of an egg has now risen above 30p. The cost of a box of six free range eggs averages £1.80 at many major stores, and is likely to rise further. The reason is the spiraling costs of production (C in PINTSWC).
There has been a steep rise in the cost of chicken feed. Chicken makes up 60% of the cost of producing eggs. In addition poultry farmers are also being forced to end the practice of rearing hens in battery cages, ahead of an EU ban that comes into force in 2012, and are required to use only non-GM feed by supermarkets. These factors mean producing eggs costs more.
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