Firms said the agreement could also lead to a shortage of supply for many manufacturers but stressed they were not sure how long that may last.
Terry Jones, director of communications at the Food and Drink Federation, told FoodManufacture.co.uk: “Manufacturers will continue to do all they can to mitigate the increased costs of compliant eggs to avoid passing them on to consumers, however there will come a time when it will be unsustainable for businesses to absorb all of these costs and prices may rise.
“For other manufacturers availability of these important raw materials will be the greater worry. But it is simply too early to know how long this tight supply situation might last and whether it could cause manufacturers to produce smaller quantities of product.”
Current shortage
Jones also said that different firms would be affected by the current shortage in different ways. This depended on the amount and type of products they use, the availability of alternative supplies and their contractual arrangements with suppliers.
The response comes after the British egg industry shelved legal action against the Department for Environment, Food and Rural Affairs (DEFRA) following Monday’s last minute government clarification about its policy on illegal egg imports.
In a letter to the British Egg Industry Council on Wednesday, agriculture minister Jim Paice confirmed that a deal between the European Commission and non-compliant Member States meant that eggs produced from the now illegal conventional cages could not be exported. Such eggs would be used only in the country of origin.
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