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Sunday, 19 September 2010

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Mixed reaction to eggs, chicks imports

Authorities are in a dilemma over the import of eggs and hens to address the severe shortage of eggs in the local market. At a meeting of the Department of Animal Production and Health, the All Island Poultry Association and farmers representatives last week it was decided to import eggs and one day old she chicks as a temporary measure. However, department sources said that this decision will not be implemented because such imports may affect the local industry. A spokesman said that local hatcheries have invested huge money and the decision to import may hamper the industry.

Therefore the department does not intend to implement the decisions taken at the meeting, he said.

The Chairman of the All Island Poultry Association Dr. D.D. Wanasinghe said that there is a severe shortage of eggs and as a result the open market price of an egg has gone up to Rs. 17 and will shoot up to Rs.19-20 in the coming week.

There is no chicken meat shortage in the country and local farmers can supply the demand even during the coming festival season, he said. Local poultry farmers cannot increase egg production immediately. Considering the adverse impact on bakery and confectionery industries the association and the Department of Animal Production and Health agreed to permit the import of eggs as a temporary measure, Dr.Wanasinghe said.

However, importers should inform the department and the association where such imported eggs are sold and the origin of the imports. Health concerns have to be tightened on such imports, Dr. Wanasinghe said.

There is a 150,000-200,000 shortage of one day old she chicks and therefore egg production cannot be increased. Local hatcheries will not be able to provide these she chicks until March next year. Considering this issue it was decided to import up to 200,000 day old she chicks for the farmers, Dr. Wanasinghe said.

The controlled price of chicken meat is Rs.350 but there is no price control on skinless or processed chicken. Prices of poultry products fluctuate frequently with supply changes.

Consumers are suffering as a result of market failure due to wrong market interventions, analysts said. Government had enforced a maximum price for processed chicken at Rs. 320/kg earlier and the farmers earned a loss due to the high cost of production. As a result supply declined and recently the government increased the maximum price to Rs.350/kg.

However, according to the Department of Census and Statistics (DCS) the average open market price of fresh chicken in Colombo was reported to be Rs. 427.46/kg in August. It increased to Rs.486.32 in the first week of this month.

 

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