In the News

Theory of the Firm - Egg farmers get squeezed by higher costs

Graham Watson

8th November 2022

This is an excellent article for sophisticated cost and revenue analysis - costs of producing eggs have gone up - notably feed and energy costs, and yet the price that supermarkets are paying have scarcely budged.

Egg farmers squeezed as costs rise

You might think about shutdown points, the monopsony power of supermarkets as egg buyers and what the impact of poultry farmers leaving the market would have on market price.

Some farmers have accused supermarkets of not paying them a fair price for their eggs.

According to the Guardian, "A third of farmers surveyed by the trade body the British Free Range Egg Producers Association (BFREPA) reported they had reduced the number of hens in their flock because egg prices meant they were unable to cover their costs."

The Guardian article can be read here

Income from the output of eggs in the United Kingdom was £821 million in 2021.

In the UK, there exists four ways of egg farming: organic, free-range, barn, and caged

Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to tutor2u, reads voraciously and is interested in all aspects of Teaching and Learning.

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