Beef and sheep farmers have to date benefitted a little from Brexit, with the fall in the value of sterling boosting exports, but it has had a negative effect on poultry producers and, to a lesser extent the pig industry, as the cost of imported feed has increased.

Add to that the fact the supermarket giants, Tesco and Morrisons, have jumped on the bandwagon and announced they too will stop selling eggs from caged hens by 2025 – to follow on from fellow chains, Sainsburys, Marks and Spencers, Iceland and Aldi – and the potential for further reductions in value of all types of eggs, and the industry faces an uncertain future.

According to Myles Thomas, chairman of the British Free Range Egg Producers Association, feed costs have already increased £35 per tonne or £2000 per week, for a 60,000 free-range egg unit from April through to the EU Referendum, due to serious flooding in South America.

Furthermore, the fall in the value of sterling by 9% against the euro since June 23 to July 19, is expected to increase feed costs by a further £10-£15 per tonne.

The change from caged eggs to barn eggs, or free-range eggs adds further costs to the industry too with values ranging from in excess of £18 per bird to move from cage up to barn and £32 per bird for free-range.

“The free-range egg industry has had a great run of years when lots of other sectors have experienced tougher times,” said Mr Thomas.

“We have seen a lot of expansion in free range production but at the same time we have also seen falling prices, which coupled with the increase in feed costs for those not linked into a feed contract, is causing concerns medium term.

“The retail market for free range has been increasing by 8% per year in volume but as more and more are sold and come onto the market, prices have been falling. My concern is that with no caged eggs, free-range will become standard and the premium available for free range will disappear.”

Instead, Mr Myles welcomed barn eggs, which he said the supermarkets are expected to provide as a discount egg alongside premium priced free range types.

However, with huge growth in free range egg production over the past couple of years, the sector is entering a situation of oversupply, which as always curtails prices, putting additional pressure on the market.

Pig margins are also being affected by increased feed prices, however, with the fall in the value of sterling, and reduced supplies and increased on the continent, exports have been on the up bolstering values.

As a result, GB pig prices have recorded three months of consecutive price increases with the first two weeks of July seeing continued strong growth, and an APP just shy of 130p for the first time since December, 2015.

By the week ended July 9, the APP stood at 129.47p/kg, a price last recorded in November 2015.

The SPP grew at a similar rate as the APP during June, with the price increasing more than 4p during the month, to end at 120.88p/kg. After increasing by 3.6p in the first two weeks of the month, the gap between the APP and SPP decreased to 3.46p by the end of the period. The latest SPP, for week ended 16 July, stood at 128.14p.

Weaner prices are also slowly but surely heading north, with the GB value for 30kg weaners increasing at a greater knot than 7kg weaners. The former recorded a price rise of £1.00 during the month, to average £40.17, with 7kg types increasing 68p, to £30.06 for the month June – the first time they have hit the £30 mark since January.

Behind these welcome price rises is the fact UK exports of fresh/frozen pork increased again in May, to 142,000 tonnes – a 10% increase on the same period a year earlier. Strong export volumes to China were again the main factor with shipment volumes up 76% in May on 2015 levels.

However, exports to Ireland and Germany recorded decreases of 7% on last year, while shipments to the United States, Hong Kong and the Philippines all saw strong growth, with volumes to the Philippines increasing over seven-fold on May last year.

The value of UK exports of fresh/frozen pork was also on the up, rising 25% in May, to £16.7m, on May 2015 figures. This was assisted by the strong pig price in China, and a rise in shipments of high shipments of high value cuts to the US.