Grain costs hit egg prices

The price of eggs could rise because of high grain costs, the Commercial Egg Producers Association of WA has warned.

The price of wheat has soared to more than $300 a tonne because of drought in the US.

CEPA president John Simpson said the poor grain harvest in the US was the biggest driver of grain prices in WA and was forcing up the cost of production. "As grain producers in WA see international prices increasing, they may hold on to their stockpile and sell into the overseas market," Mr Simpson said.

"This leaves less grain for the WA egg industry at higher prices resulting in an increase in the cost of production. According to the Australian Egg Corporation, this could translate up to an extra 50¢ per dozen eggs at the supermarket."