Egg shortages loom in Sweden when the Ukraine crisis drives up food prices – Xinhua
Stock Photo of Peter (L) and Johan Wellander (R). (Swedish Agg / Handout via Xinhua)
Several large egg producers have announced their intention to raise their prices “sharply”. But such an increase in the price of eggs, an important staple food, would inevitably burden consumers, who are already struggling with inflation in all aspects of their lives.
by Fu Yiming, He Miao and Patrick Ekstrand
STOCKHOLM, May 8 (Xinhua) – For Johan Wellander, a Swedish egg producer, the enormous costs of feeding his laying hens have made the situation unsustainable, thanks to inflation accelerated by the ongoing Ukraine crisis and Western sanctions against Russia.
The conflict between Russia and Ukraine has affected commodity markets and caused a ripple effect globally. Sweden’s egg industry is the latest to bear the burden, as it is heavily dependent on grain to feed the cattle – and this against the background of ever higher costs for fuel.
“THE SITUATION IS URGENT”
Wellander stood among feed silos and farm buildings that house more than 90,000 laying hens and described a horrible picture for Xinhua: Egg farmers in Sweden are struggling to make ends meet, as they end up between the high costs of egg production and the rising retail prices.
“The situation is urgent and if the egg price does not increase, we must close down our business,” said Wellander at the poultry farm he runs with his brother on an agricultural plain outside the city of Örebro, about 160 km west of the Swedish capital Stockholm.
Photo taken on April 13, 2022 shows the shelf in a supermarket in Stockholm, Sweden. (Photo by Wei Xuechao / Xinhua)
His concerns were similar to those of Leif Denneberg, who is chairman of the board of Svenska Agg, the industry association for the Swedish egg industry.
The price of feed has doubled recently and that the price of eggs in stores does not move at the same rate will be devastating for the country’s egg industry, says Denneberg to the local newspaper Aftonbladet.
If an average egg costs 2.5 Swedish kronor (0.25 US dollars), 0.80 kronor of that is the cost to the farmers. But today, this entire SEK 0.80 is used to buy feed, Denneberg explained.
For Wellander, the nightmare does not end here, as egg production is a business with long lead times.
Photo taken on April 14, 2022 shows the shelf in a supermarket in Stockholm, Sweden (Photo by Wei Xuechao / Xinhua)
“We will have new laying hens delivered in a few weeks at a cost of approximately SEK 1 million, but given the current situation with the rising costs for feed, fuel and electricity, it would be most economical to pay the invoice without receiving the hens. “, he said.
“Then we would ‘only’ lose SEK 1 million instead of SEK 2 million if we put the hens into production.”
BURDEN ON THE CONSUMER
Simultaneously with the pricing negotiations between major stakeholders, several major egg producers have announced their intention to raise their prices “sharply”.
But such an increase in the price of eggs, an important staple food, would inevitably burden consumers, who are already struggling with inflation in all aspects of their lives.
To make matters worse, the rising costs of food in Sweden are exacerbated by the rising price of plastic, which is widely used for packaging food.
Photo taken on April 13, 2022 shows the shelf in a supermarket in Stockholm, Sweden. (Photo by Wei Xuechao / Xinhua)
The soft plastic material polyethylene in particular is becoming more expensive. The spike can be attributed to the rising costs for energy and oil, and for certain additives used in plastic production from Russia, from where imports have been stopped.
Andreas Malmberg, CEO of the plastic manufacturer Trioworld, told Swedish Television that consumers would have to “pay more for everything” they buy.
Many Swedes share Malmberg’s view that inflation will be sustained.
“Shopping for groceries is becoming more expensive, especially if you have three children – including two teenagers – to feed,” says Fredrik Sandberg, a father of three who lives in the Swedish capital, to Xinhua.
The rising energy costs and the rise in interest rates have made Sandberg worried about the future, which is aware that many others are much worse off.
A consumer is shopping in a supermarket in Stockholm, Sweden, April 13, 2022. (Photo by Wei Xuechao / Xinhua)
“Even though I am prepared to pay more for food, there is a limit and we can end up having to buy cheaper goods to survive financially,” said Sandberg.
“Unfortunately, many, especially single parents with low incomes, have already been forced to do so and no one knows when this spiraling inflation will end.” (1 Swedish krona = 0.1 US dollars) ■