Are Supermarkets Profiteering from Egg Price Hike?
UK - British Supermarkets have been accused of profiteering from the huge increase in prices of eggs which has taken place over the last year.
2 June 2008
2 minute read
There is evidence that they have taken the lion's share of the 47.4 per cent increase seen in egg prices over the past year, reports the Daily Mail Online.
They say that figures from the farming industry suggest claims by the stores that they are protecting shoppers against big rises in food shopping bills may be a sham.
The price of a dozen medium free range eggs has risen by 83p or 47.4 per cent since May last year to £2.58.
Yet the amount going to farmers has gone up by only 12p to 77p a dozen, which is barely above the cost of production.
By contrast, the amount grabbed by the supermarkets and the packers, who have to cover transportation costs, has surged by 71p a dozen to £1.81 - a rise of about 65 per cent.
The egg producers claim they are living on the bread line while supermarkets and packers are generating yet more profits from the price increases.
