Retail takes fair trade hostage

NVP: Something goes wrong with the pricing of table eggs and the distribution of the margin. Despite the high demand for table eggs, the quotation dropped by 10.5% (brown) to 12.5% (white) from the end of March. Retail is taking (un)intended fair trade hostage and continues to force the poultry chain into a 'race to the bottom'.

Price development of the NOP quotation (egg price quotation)

The NOP quotation tries to be the best reflection of the selling price of eggs (ex-farm), based on actual supply and demand. Traditionally, the quotation for table eggs rises in the period before Easter and then falls again in 2020. The quotation follows the normal pattern, with prices falling by 10-13% between week 13 and week 17. This is special in 2020 because this year the corona crisis will have an effect on retail demand. This is not reflected in the quotations.

Around the fields: greater demand for table eggs

In the weeks before Easter, the egg trade normally builds up 10-15% extra stock in order to be able to meet the greater demand. This year the hoarding was added because of corona. The shelves with eggs were empty in several places. The higher demand turned out to be partly incidental, because since the corona crisis the sales of table eggs have risen structurally. Strikingly enough, this is not reflected in the quotation.

Retail continues to increase margin

Since 2017, the margin of retail on table eggs has been growing steadily. Also in March 2020, the consumer price index increased further from 140.53 (February 2020) to 141.32 (March 2020). On the other hand, the ex-farm index (compensation poultry farmer) continues to move around the 2015 price level.

On the basis of the prices collected in the supermarket and the NOP quotation, retailers are generally making 150%-250% margin on table eggs. This happens on the back of the poultry chain. Fair trade is hard to find, retailers continue to increase their margin.

NVP pleads for consultation on fair remuneration with market forces

NVP: "It is high time that retailers take their social responsibility seriously. The NVP would like to consult with them and the egg trade in order to jointly look for a better system, for real pricing, fair margins for the poultry chain with sufficient market incentives based on supply and demand per egg segment. It is high time for Fair Trade in their own country".

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