LOWER North egg producers Stephen and Trish Simpson do not supply to supermarkets, but say the cheap prices offered still affect their business.
"We normally produce most of our own feed and sell some for cash flow," Mr Simpson said.
"But because of the season, we have had to keep it all and buy in some, which was costly.
"The problem is we can't just pass the cost on to consumers - they can't afford it and people expect the low prices offered by the supermarkets.
"The egg industry is no different to the dairy industry, the supermarkets will discount us into extinction.
"Then consumers will have no choice in what eggs they can buy."
RELATED READING: Dairy numbers drop across SA
The couple run Murphy's Crossing - a free-range egg business that has been operated by the Simpson family at Wasleys for the past 60 years.
They operate at 1500 birds per hectare, producing about 700 dozen a day, which are sold at markets, cafes, shops, restaurants and locations from Wasleys to Victor Harbor.
Mrs Simpson said it was also difficult to compete with 'roadside eggs', which were of concern as they didn't have to follow stringent production rules.
"We have to stamp our eggs, use all new boxes etc, which is undercutting and undermining our businesses - it's just getting harder and harder," she said.
- Start the day with all the big news in agriculture. Click here to sign up to receive our daily Stock Journal newsletter.