Stats NZ says higher prices for fresh eggs were a major driver in a 12.1 percent annual increase in food prices. Photo: RNZ / Cole Eastham-Farrelly
The average cost of a dozen eggs has increased by more than 75 percent over the last year and any real relief for consumers could still be months away, an industry leader warns.
On Wednesday, Stats NZ said higher prices for fresh eggs were a major driver in a 12.1 percent annual increase in food prices.
Over the year to May, the average cost of a dozen eggs jumped from $4.86 to $8.58, an increase of 76.5 percent, the latest figures show.
On Thursday, prices for a dozen size 6 eggs ranged from $7.10 to $9.70 at Countdown Mt Roskill, and from $6.98 to $8.85 at Pak'nSave Royal Oak.
Both Foodstuffs, which operates New World, Four Square and Pak'nSave supermarkets, and Countdown initially agreed to comment on egg prices. However, neither company responded to subsequent requests.
The price spike had been widely predicted to follow the introduction of a ban on battery (caged) farming which meant fewer hens were laying as farmers transitioned to higher-welfare systems.
However, other factors at play continued to push prices up, even as flocks were rebuilt, according to Egg Producers Federation director Michael Brooks.
"Chick numbers have increased for the last few months, so there are more hens coming into lay, at about five months old," he said.
"But it will be October [or] November before numbers of layers are back to an equilibrium."
Farmers also faced pressure from general inflation, transport and wage costs, but the largest issue was the price of grain, Brooks said.
"Grain costs are up at least 60 percent in the last year. Higher grain costs mean higher feed costs and feed is 65 to 70 percent of the cost of producing an egg."
Grain supplies have been squeezed since Russia's invasion of Ukraine, a major producer of corn, barley and wheat.
Although New Zealand does not get its grain from Ukraine, the reduced flow from the country has impacted global feed costs. In January, free-range egg producer Nigel Gould reported a $4000 increase in his feed bill over two months.
- This story was originally published by Stuff.