Ingredient issues

23 March 2012 – I don’t think there is ever a time when manufacturers are not worried about the availability or cost of some ingredient – so far this year it seems that the ingredient under scrutiny is eggs.

On 1 January new Europe wide animal welfare legislation came into force which bans the use of cramped battery cages, forcing egg producers to use larger enriched cages that allow laying hens more space. Many countries across the EU admitted that their egg industries are not ready to meet the new requirements sparking fears of availability problems and higher prices.

A statement released this week by Caobisco proves these fears were founded. Caobisco claim that manufacturers throughout Europe are currently experiencing alarming shortages of supplies of eggs and egg products. The situation in terms of availability and price is dire and unprecedented. Eggs are a vital ingredient for Caobisco products, especially for use in production of biscuits and cakes.

Manufacturers are finding that egg suppliers are not able to fulfill contracted deliveries of eggs and this is leading to closures of production lines and cancelled shifts at factories of all sizes. Some companies even report having to obtain supplies from supermarkets to enable production to continue.

According to latest European market forecasts, by June 2012 demand for eggs will exceed EU production by 20% if the Commission fails to act.

As a direct result of supply shortages, the price of eggs has increased by an average of 75% across the European Union in the last 6 months. This is likely to have dramatic consequences for both manufacturers and consumers.

Whilst Caobisco members are committed to respect EU legislation, it calls on the European Commission to take immediate action to ensure sufficient availability of eggs in the EU.