Free range egg farmers are losing nearly £10 a hen, more than £300,000 per flock.

The cost of feed, electricity, labour, and other essential materials continues to be at record levels, according to independent consultants at ADAS.

The British Free Range Egg Producers Association (BFREPA) has called for the whole industry to come together by signing its Egg Pledge - a commitment to work towards a more sustainable future and stop businesses collapsing.

Data produced in October shows losses are being caused by rises in production costs and BFREPA says the only solution is for farm-gate prices to rise.

BFREPA CEO Robert Gooch said: “We know the cost of living went up 10.1 per cent in the 12 months to September, and rising food prices was the key contributor.

“Farmers have seen small rises in the price they are paid for their eggs, but it’s nowhere near enough for their businesses to be sustainable.

“We need the whole industry to collaborate and try and fix this broken market.”

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ADAS puts the total average cost of a flock of 32,000 hens at £1.24million, with average revenue from egg sales only bringing £921,000.

This unsustainability has led to some producers being forced to cease production altogether.

Industry predictions are that both production costs and egg demand will continue to increase over the winter, causing many more farms to suffer as this crisis continues.

Mr Gooch says the Egg Pledge aims to unite the sector behind a commitment to work together for a better, more sustainable future, and is urging all businesses involved in free range production to sign the pledge, which already has 300 signatories.

“It is of the upmost importance that we do everything we can do bring about positive change in the industry, so that producers receive the support and success that they need,” he said.