The British Egg Products Association (BEPA) has warned that the escalating conflict in Iran is driving substantial cost increases across the egg products sector, putting further pressure on manufacturers, foodservice operators and retailers already managing a volatile supply chain.
The association reports sharp inflation in three critical cost areas: energy, fuel, and packaging, as well as some challenges with the availability of raw material.
Processing egg products is an energy-intensive activity, and global energy markets have been highly sensitive to the disruption in the Middle East. The conflict has contributed to rising wholesale energy prices, increasing the cost of pasteurisation, drying and refrigeration across the sector.
Fuel costs have also surged as shipping routes are diverted and global freight capacity tightens. This is affecting both imported inputs and domestic distribution, with operators facing higher transport charges across the board.
Packaging materials, particularly plastics and cardboard, have seen further inflation as petrochemical supply chains come under pressure and manufacturing costs rise.
Elwyn Griffiths, Chair of the British Egg Products Association, said: “The conflict in Iran is having a clear and immediate impact on our members’ cost base. Energy, fuel and packaging are all seeing significant inflation, and these are not optional inputs, they are fundamental to producing safe, high-quality egg products. Our members have worked hard to absorb as much of this pressure as possible, but the scale of these increases is becoming unsustainable.”
BEPA is calling for continued dialogue across the supply chain to ensure stability and transparency, and for government to recognise the cumulative impact of global conflicts on UK food production.
Griffith added: “Egg products are essential ingredients for thousands of food manufacturers and caterers. We need a coordinated approach to maintain resilience and protect the long-term viability of the sector.”
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