Industry warns price cut will hurt egg producers

On Sunday 6 March 2011, 18:14 EST

The egg industry hopes consumers will join it in calling for a major supermarket chain to lift its price on free range eggs.

The Australian Egg Industry Association says Coles' recent decision to slash prices is unsustainable and will hurt the local industry.

James Kellaway, the group's executive director, hopes industry and consumer pressure can persuade the chain to reverse the move.

But he has stopped short of calling for a boycott.

"If Australian egg producers want their fresh eggs coming from Australia and not imported, then they should not support these kind of price pressures," he said.

"We need to be careful because as suppliers we need to comply with the Trade Practices Act and trade law.

"They have the market power. All we can do is try and educate them and try and work with Coles. But suffice to say, it is unsustainable at this point in time."

I dont get that I would think cheaper means people use more.. its the same with petrol .. why not eggs..I made a cake the other day had 5 eggs in it.. dont do that very often as I only buy free range.

but I might if the eggs are cheaper..and that means more turnover for the egg farmer surely thats a good thing.

I dont know anymore I would think the higher prices would stop people buying.

bogarde73 wrote on Mar 7^th, 2011 at 9:36am:

The egg industry hopes consumers will join it in calling for a major supermarket chain to lift its price on free range eggs.

LOL, yep, I can really see consumers protesting for a price rise!

Eventually there will be a decisive 'battle' outcome,
but until then,
the War between the Working Class and the Consumer Class
...continues.

And yes, I work in the Egg industry and no I don't give a hoot about how much non-egg-working-peoples have to pay, as long as my wage gets higher. I guess in Australia, you have to be in it to win it ...and that's the hard lesson a lot of expatriot Australians "still calling Australian home" will soon learn.

;)

cods, it's pretty simple really, just as it is with milk.
If Coles & Woolies are going to hold the prices down, who will lose out in the end.
The consumer? No, they are getting cheaper prices.
The supermarkets? No, they will continue to make their margins.
The supplier? Yes, because the supermarkets will squeeze them lower or they will source their supplies overseas, which is probably what they want to do anyway. Just like they did with orange juice.

Do the right thing, spend a few extra dollars and buy free range googs  :)

None of this makes sense to me. They still have to buy the eggs and milk from someone. If they sent the farmers broke, they would start running out of the product. By discounting it, they actually increase the sales which is good for dairy farmers.

If it is cheaper from overseas, the farmers are screwed regardless.

I think farmers just like to whinge. Are there any farmers being forced to accept less for their produce because of this?

Yes, some already, more eventually.

Who?

bogarde73 wrote on Mar 7^th, 2011 at 9:36am:

Industry warns price cut will hurt egg producers On Sunday 6 March 2011, 18:14 EST The egg industry hopes consumers will join it in calling for a major supermarket chain to lift its price on free range eggs. The Australian Egg Industry Association says Coles' recent decision to slash prices is unsustainable and will hurt the local industry. James Kellaway, the group's executive director, hopes industry and consumer pressure can persuade the chain to reverse the move. But he has stopped short of calling for a boycott. "If Australian egg producers want their fresh eggs coming from Australia and not imported, then they should not support these kind of price pressures," he said. "We need to be careful because as suppliers we need to comply with the Trade Practices Act and trade law. "They have the market power. All we can do is try and educate them and try and work with Coles. But suffice to say, it is unsustainable at this point in time."

This is Australia isn't it?
Do we still live in a free market based on capitalism?
Or are some industries exempt?
Shouldnt we be happy that prices are driven by market forces and not communist regimes?