Rising inputs and lower egg prices are going to make 2019 a very challenging year for egg producers. I do worry that the supply and demand model in the egg industry is not working for the producer.
We have falling egg prices during periods of over production but where are the balancing rising prices when supplies have been tight in the past?
Our planning data, and the chick placing statistics shows that free range expansion has paused, but those projects are only dormant and will spring to life when there are signs that the market is returning to balance.
I have been around long enough to remember previous periods of consolidation within the free range sector, when attention inevitably turns to production size, where smaller less commercially viable production give way to larger units.