Scottish Egg Producer Retailers Association. MARKET REPORT

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1 Scottish Egg Producer Retailers Association Date: 24th April 2015 MARKET REPORT Size V. Large Large Medium Small Farm to Shop Prices p Scottish Wholesaler Colony p 80p English Wholesaler Colony p 80p 60p p Colony 1.30(-5p) 1.70(-5p) 1.10(-5p) 1.60(-5p) 1.05(-5p) 1.45(-5p) 80p(-5p) 85p(-5p) Packer / Producer Contracted average Price Organic FreeRange Barn Colony 1.20/ p/ p/95p 65p/85p Producer / Consumer V. Large Large Medium Small - Colony Prices p - Free Range Prices Free-Range to Farm Shop Prices 1.75/ / / p Central Egg Agency Colony 95p(-5p) 80p(-5p) 70p(-5p) 1.50(-5p) 1.45(-5p) 1.30(-5p) Imported Continental Prices in Bulk Dutch Eggs Barn 83p(-3p) 70p(-5p) 64p(-4p) 60p 58p(-2p) 1.00(-5p) The market is still holding up not too badly a lot more Free Range about but they are finding a home. The good weather that we are having is obviously encouraging the population on to summer lighter diets earlier this year and eggs play a big part in that, with their healthier image high protein low fat but the big factor is so easy to make a quick easy meal when everyone is charging about with more outdoor activities. There are some cheap parcels of Continental eggs about the cheapest is German Colony 61p Large 56p Medium but remember there is no market for Colony in Germany as all their retailers have gone alternative production, their only market is in product or export. Avian Influenza, there are a lot of protective barriers being put up by more and more countries supposedly to protect their industries as AI is found in more countries around the world.

2 Looking at the positive cases in the EU apart from the isolated case in Northern Italy, all confirmed sites are on the Northern Autumn migratory route of wetland species coming from summer in Siberia down the Baltic to winter in Northern Europe, Germany, Holland and our one case in Norfolk. We are now into the summer migratory pattern hopefully with the problem flying away and there are no cases in Africa, Spain or France which is the summer migratory route, can we perhaps relax slightly? Apologies for not putting in the details of the Farmers Weekly awards last week, the two grey cells that I have were not talking to each other, there is still one week left, so get entering, we in Scotland have always done pretty well and even last year s big winner David and Helen Brass of the Lakes Free Range have production in Scotland which is marketed with SCO on the eggs, and are members. Obviously advertising whether very local (you) or nationally helps to promote egg sales and increase overall egg consumption, but the UK is still way behind most of the EU and the rest of the developed world in overall egg consumption per head of the population, every piece of advertising and media coverage helps to promote the marvellous healthy eggs that we produce in our country. Be proud and promote. Tesco, They are having a bit of a rough time, a lot of people would say that they have worked hard to get there, but as they have cancelled all new builds, which would come under non- taxable profits and will now be on profits linked to actual sales we wonder what the big city investors will do? Kevin Bacon helps US boosting egg sales Egg packers and marketers have much to learn from the US, where domestic consumption has grown in both volume and value terms, reaching a 30-year high at the end of Partly thanks to movie star Kevin Bacon. Photo: Koos Groenewold "We have added a dozen eggs per person over the past four years and that growth trend is not slowing down," Kevin Burkum of the American Egg Board told the recent IEC conference in Lisbon. "This is despite the fact that the prices consumers are paying for eggs in the US have also gone up. There was a 17c/doz increase in 2014, yet unit volume and value volume have gone up."

3 Kevin Bacon selling eggs This growth has been driven by an active marketing campaign, including recruiting Hollywood A-lister Kevin Bacon to help sell the product. Mr Burkum explained that the American Egg Board's recent "wake up to eggs with Kevin Bacon" web video had gone viral, getting more than 3m hits in its first month more than was anticipated for the whole year. But the market expansion has not just been at retail level, with egg products and quick-serve restaurants also using more eggs. The reasons behind all this were well understood, said Mr Burkum. Eggs were growing in popularity because of their protein content. More people were eating eggs for breakfast as they cut down on sugars and carbohydrates. Eggs were also being consumed at other meal times. Protein a mega trend "Protein is a mega trend. Americans have this insatiable appetite for protein. Typically, two-thirds of our protein is consumed at dinner, but that's beginning to shift and consumers are looking to increase their protein intake throughout the day." The barriers to egg consumption were also diminishing, with cholesterol no longer seen as a major health concern. Eggs a nutritional powerhouse To capitalise on these trends, the American Egg Board had been really pushing the protein message in its promotional activities. "We talk about protein in almost every single piece of communication we put out. We're beginning to differentiate that a bit. As more companies get into protein, we are beginning to talk about 'high-quality protein'. "We also talk about egg being a nutritional powerhouse, and about the fact they have no sugar or carbohydrates, unlike cereals or yoghurts, and the fact they are a natural source of vitamin D." UK losing value The US was not the only area of the world enjoying demand growth. Mark Williams from the British Egg Industry Council explained that UK consumption was up 2% in 2014, and 6% in the first quarter of This was partly due to the first TV advertising in 10 years, the fact that egg standards had been raised and that celebrity ambassadors were being used to deliver healthy messages. "But what's worrying for the industry is that that we have lost a lot of value. The reason for that is that our big four supermarkets have had so much stick from the two major discounters they are having to compete and promotions on eggs are now the norm." Source: Farmers Weekly By Phil Clarke

4 This piece shows how important a disease free record is to our whole industry. Fertile egg exporter HiBreeds wins Queen s award Hatching egg exporter HiBreeds International has received a Queen s Award for International Trade the third time it has been recognised in this way. The Norfolk business, run by Laura and Nick Chandler, works in partnership with Almarai Food Group in Saudi Arabia, Saudi Arabian Airlines and Moy Park to supply fertile eggs to the Middle East. Truckloads of 200,000 eggs Daily flights are supplied with truckloads of 200,000 eggs at a time, produced on farms throughout Ulster. Last year the company shipped more than 70m Ross 308 fertile eggs via land, sea and road in to Saudi Arabia. "With an 80% hatch, a crack rate below 1%, and total freedom from disease guaranteed by HiBreeds, this is not business for the faint-hearted," said a statement. More than 350m hatching eggs The company has shipped more than 350m hatching eggs in to the Middle East since it first started in 1998, and achieved cumulative export revenue in excess of 120m. HiBreeds previously won the Queen's Award for International Trade in 2003 and 2011, in recognition of strong export growth. Mr Chandler said he aimed to take the business to African markets, to help establish a local food production programme, "to bring high-quality protein from healthy British chickens". Source: Farmers Weekly By Philip Clarke ONE weeks to go until the closing date Enter Nominate Awards Night Forward

5 ONE weeks to go until the closing date for the Farmers Weekly Awards entries, have you looked at entering one of our 15 categories? Click here to see the full list. How to enter in just 3 easy steps STEP 1 Download and complete an entry form specific to the category you are entering. STEP 2 Tell us what you have achieved by answering the questions on the form. STEP 3 Submit your entry online with supporting material or post 5 copies of your entry by 30 April For top tips on how to put your entry together click here For more information about the Farmers Weekly Awards and the full list of categories visit: Don t forget to get your entries in before the deadline of the 30 th April. Simply enter the awards online and tell us more. #FWAwards

6 Why did the hen run away from home? She was tired of being cooped up! (And summer is a coming in) Iain.campbell@forfarmers.eu

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