It highlighted growing market pressures that it said had begun to impact parts of the UK egg sector, as recent months saw an increase in laying hen numbers alongside continued growth in imported egg volumes.
Though demand for eggs remains strong, NFU Scotland warned that the combination of increased supply and seasonal market trends is beginning to place downward pressure on egg prices.
NFU Scotland Poultry Committee chair Matthew Steel commented: “The long-term outlook for Scottish egg production remains positive. Eggs are an affordable, nutritious and sustainable source of protein, and demand continues to be strong.
“However, as with any agricultural sector, investment decisions must be in conjunction with the realities of market conditions. We are beginning to see signs of increased supply across the market, and that is having an impact on prices in some areas.”
The Union said that recent increases in production capacity should be viewed alongside wider market developments and strategic investment in supply chain infrastructure. It also stated that it was “essential” that Government considers the impact of importers, particularly from countries operating to standards that differ from those required of Scottish producers.
NFU Scotland has highlighted concerns around the importation of eggs produced in systems that would not be permitted domestically, and is calling on Government to ensure a level playing field for Scottish producers.
“Producers should not find themselves competing against eggs produced under conditions that would not be legal here.”
Steel added: “Scottish egg producers work to high standards of animal welfare, environmental management and food safety. It is only right that imported products are produced to equivalent standards.
“Producers should not find themselves competing against eggs produced under conditions that would not be legal here. That undermines confidence in the marketplace and puts additional pressure on businesses already facing rising costs.”
Despite some parts of the sector potentially experiencing softer market conditions, NFU Scotland maintained that producers supplying retailers through established contracts may be less exposed to short-term fluctuations.
Steel concluded: “Our focus remains on ensuring Scottish producers receive a fair return from the marketplace and that consumers have access to high-quality eggs produced to the standards they expect. Anyone considering investment in egg production should undertake thorough due diligence and carefully assess market conditions, supply chain arrangements and long-term business viability before committing significant capital expenditure.”
NFU Scotland confirmed it will continue to engage with Government, retailers and the wider supply chain to promote Scottish production and press for action on imports that fail to meet equivalent standards, calling for Government to ensure growth in the sector is underpinned by strong market fundamentals and fair competition.
