The war in Ukraine and the serious world situation are causing rampant production costs, not least for fodder.
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Farmers Peter and Johan Wellander warn of an acute and deeply worrying cost situation, which will affect the supply of Swedish eggs in the future, Svenska Agg, the trade association of the Swedish egg industry reported.
Therefore, the egg price in the store needs to be raised immediately by about 45 öre ($0.045) per egg that goes directly to the egg farmer, the Wellander brothers believe.
The brothers are egg producers just outside Örebro. They have room for 91,000 laying hens. The eggs are produced by free-range outdoor hens, free-range indoor hens and organic hens.
"Even before the war broke out in Ukraine, we had increased costs for, among other things, feed and energy. The further cost increases that the war has entailed now make the situation unsustainable, says Peter Wellander. The cost of feed has increased by 50 percent and together with other price increases, the total costs of producing an egg have increased by about 70 percent.
"We have previously ordered new laying hens for one of our stables. They will be delivered in a few weeks and cost about one million kronor, says Johan Wellander. Given the rampant price development for feed, fuel and electricity, it would be most economical to pay that invoice but not receive the hens. Then we lose "only" one million.
"If we take the hens home to the farm and put them into production, we lose twice as much. An immediate increase in egg prices is needed to save egg production in this urgent situation, otherwise we will have to phase it out", says Peter Wellander.
"Of a store price of approximately SEK 2.50 per egg, we get just under a third and when the feed is paid, we have nothing left to cover all other costs, says Johan Wellander. The price to the egg producers therefore needs to be increased by at least 45 öre per egg.
"The increased production costs are putting a lot of pressure on the Swedish egg industry and this can lead to a shortage of Swedish eggs, says Leif Denneberg, Chairman of the Board of the industry organization Swedish Eggs. It is a long production cycle from breeding hen to finished egg. In the event of disruptions, it takes time to recreate full production throughout the chain. Reduced degree of self-sufficiency leads to a deterioration in Swedish crisis preparedness.
"The egg industry's hope is that trade will take its share of responsibility in this force majeure-like situation. I hope and believe that consumers are willing to pay to maintain the Swedish self-sufficiency and the good added value that comes with Swedish certified quality eggs", says Leif Denneberg. ■