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There have been a number of price reductions over the last week in what appears to be a race to the bottom.
Whilst I understand that there is oversupply, there really is no justification for price reductions apart from an attempt by retailers to increase their profit margins.
Supply and demand is being used by retailers as a model to dictate their margins – I find little evidence that it influences the producer price on the upside – with the current price a long way from being reflective of the consumer price.
With the growth in free range over the last ten years introducing a whole new generation to egg production it is understandable that lessons hard learned get forgotten.
Whilst we have too easily become familiar with an enumerating array of influenza strains, diseases and cross contaminations we must not forget the one challenge that has to date proved to be the producer’s biggest foe – salmonella.
This foe shows no sign of allowing producers to rest on their laurels. A new highly drug resistant strain of salmonella – Heidelberg, a strain unknown to many, has emerged in the Americas resulting in large egg and poultry recalls. No producer wants to be the first to be linked with a new strain of salmonella in the UK.
Reports on both subjects covered at the conference are enclosed in this month’s copy of the Ranger.
Robert covers the contracts consultation in his comment and members are invited to contribute to the consultation.
The serious outbreaks in Belgium of HN3 with close to 50 farms losing up to 60% mortality to a low pathogenic strain of avian influenza, is raising concerns here in the UK.