Why are eggs in short supply and will shops run out before Christmas?

Asda is limiting customers to two boxes of eggs each as fast-rising costs hit supplies.

Other major UK supermarkets are also grappling with problems in their egg supply chains, threatening the availability of a vital ingredient for festive season baking.

As well as soaring feed and energy costs, bird flu outbreaks have left some producers shouldering hefty losses.

Millions of poultry and captive birds have been culled in the UK this year as part of efforts to stop the disease spreading.

Challenging times for egg producers

Husband-and-wife team Dougie and Katy Cruickshank, of Katy’s Eggs in Torphins, Aberdeenshire, don’t supply supermarkets but they know only too well how difficult it is becoming for egg producers to stay afloat in the current, challenging market conditions.

“We’ve had to put our egg price up substantially this year,” Mr Cruickshank said, adding: “If we hadn’t done that, we would have been out of business.”

Katy’s Eggs supplies free-range hen, duck and quail eggs to a growing number of independent retailers and hospitality venues, including leading hotels, around the north-east.

The business is producing 4,000 eggs a day, on average.

Mr Cruickshank is not surprised major supermarkets are struggling to keep up supplies.

They have put up their egg prices but not passed any of that increase on to the poor farmers, he said. “If producers are losing money, which many of them are just now, that can only go on for so long.”

Energy bills have rocketed for everyone – businesses and households – this year.

To highlight other fast-rising costs of production, Mr Cruickshank said Katy’s Eggs was now paying about £430 per tonne for feed – up from around £265 just 18 months ago.

Many UK producers cannot afford to restock – so flock sizes are getting smaller, he said.

Are other supermarkets following Asda’s example and rationing eggs?

A growing number of supermarkets are displaying signs warning of possible egg shortages.

Tesco has reported good availability, with no buying limits, and added it is working with producers to protect supplies.

Sainsbury’s has also not limited purchases but warned some stores may be running low.

Morrisons reported no major supply issues.

But customers of Lidl are limited to three boxes of eggs each and many Aldi stores are suffering shortages.

What is the egg industry saying?

The British Free Range Egg Producers’ Association (BFREPA) said: “In March we asked for a 40p per dozen rise in egg prices at retail level, and for the additional money to be passed down the chain to producers.

“While egg prices have risen by about 45p per dozen, many farmers have only received 5-10p of that rise.

“Egg producers have been hit with huge hikes in production costs. Feeding hens is now at least 50% more expensive than it was, and energy prices have soared in the same way that consumers have seen their domestic bills rise.

“Spending on fuel has grown by 30%, while labour and packaging also costs more.”

Will eggs run out before Christmas?

BFREPA added: “Many of our members are losing money on every egg laid, and our data shows that even those who are making a small profit do not see a long-term future.

“Our survey of 163 free range producers… showed that 33% had either reduced their flock sizes, paused production temporarily or left the industry altogether.

“Fewer hens means fewer eggs and we warned in March that eggs could be in short supply by Christmas.

“Egg supply naturally tightens at this time of year as businesses and individuals prepare for Christmas, which may be exacerbating the situation. On top of this, avian influenza has resulted in the culling of laying hens too.

“We need to see farmers paid a sustainable price to restore confidence and optimism to the sector.”

The voice of UK retailing

British Retail Consortium food and sustainability director Andrew Opie said: “While avian flu has disrupted the supply of some egg ranges, retailers are experts at managing supply chains and working hard to minimise impact on customers.

“Some stores have introduced temporary limits on the number of boxes customers can buy to ensure availability for everyone.”