The Australian egg industry lobby says major supermarkets have
"ignited a price war" by slashing egg prices in a move it says endorses
caged over free range.
Egg Farmers Australia chief executive officer John Dunn said major supermarkets Woolworths, Coles and Aldi have dropped prices of eggs in their stores by up to 40 cents per carton in recent weeks.
Mr Dunn said is was a hypocritical move by the supermarkets, in particular by Woolworths and Aldi, which have made commitments to phasing-out caged eggs from their stores by 2025.
In response to a request for comment by ABC Rural, a spokesperson for Woolworths said its long-term agreements for free range egg supply means that the recent price reduction was worn by Woolworths and not passed on to farmers.
An Aldi Australia spokesperson said its aim was to "offer the best value in the market" which had lead to the reduction in its free range egg range of between 30 and 40 cents a carton.
But the Aldi spokesperson said it too had absorbed the cost of price reductions and had not passed it on to farmers.
A spokesperson for Coles said that by reducing the price of free range eggs the retailer aims to "make it easier for consumers to buy free range eggs".
"We're not talking 40 cents on the dozen, we're talking hundreds of millions of dollars to enable the industry to deliver that to the supermarkets," Mr Dunn said.
"Now if they are going to squeeze farm gate prices, they are going to make that move impossible.
Mr Dunn said Egg Farmers Australia supported the retention of the caged egg industry over free range because many of its members believe caged eggs are safer and more affordable.
But he said consumers want free range, and industry cannot grow the required amount of free range eggs unless growers are paid appropriately.
Egg Farmers Australia chief executive officer John Dunn said major supermarkets Woolworths, Coles and Aldi have dropped prices of eggs in their stores by up to 40 cents per carton in recent weeks.
Mr Dunn said is was a hypocritical move by the supermarkets, in particular by Woolworths and Aldi, which have made commitments to phasing-out caged eggs from their stores by 2025.
In response to a request for comment by ABC Rural, a spokesperson for Woolworths said its long-term agreements for free range egg supply means that the recent price reduction was worn by Woolworths and not passed on to farmers.
An Aldi Australia spokesperson said its aim was to "offer the best value in the market" which had lead to the reduction in its free range egg range of between 30 and 40 cents a carton.
But the Aldi spokesperson said it too had absorbed the cost of price reductions and had not passed it on to farmers.
A spokesperson for Coles said that by reducing the price of free range eggs the retailer aims to "make it easier for consumers to buy free range eggs".
Transition to free range harder under price drop
Egg Farmers Australia's CEO said the transition from caged eggs to free range required an enormous amount of investment by industry which was made more difficult if they eventually received less for their product."We're not talking 40 cents on the dozen, we're talking hundreds of millions of dollars to enable the industry to deliver that to the supermarkets," Mr Dunn said.
"Now if they are going to squeeze farm gate prices, they are going to make that move impossible.
Mr Dunn said Egg Farmers Australia supported the retention of the caged egg industry over free range because many of its members believe caged eggs are safer and more affordable.
But he said consumers want free range, and industry cannot grow the required amount of free range eggs unless growers are paid appropriately.
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