Egg prices sour due to scarcity
Egg prices are increasing continuously due to supply constraints and
if the trend continued, consumers may not be able to afford to buy eggs,
the All Island Poultry Association (AIPA) warned. Chairman of the
Association, Dr. D.D. Wanasinghe said that there were several factors
that constrain egg supply.
Producers have formed groups at regional level and they control
supply and manipulate the market. “ We have received information that
there is an organised move by large producers to sell layer hens for
meat and thereby reduce egg production and maintain higher prices”.
The AIPA has no control over these groups or large producers. There
is also a significant decline in the parent layer population and it has
created a short supply of layer hens, he said.
Last Friday, the retail price of white and red eggs were Rs.13 and
Rs.14. According to the AIPA in late April the egg price was around
Rs.10 . In early May it was Rs.11.50, mid May Rs.12 and by the end of
the month the price stood at Rs.14 for an egg. In the supermarkets,
prices were higher and stood between Rs.16 to Rs 17.
K. Mayadunne of the Egg Club, a group of layer farmers in the North
Western province, agreed that eggs were in short supply.
However, he said that the prices of Rs.13 to Rs14 was not high and it
was only now that farmers were getting a reasonable price for eggs.
Two months ago, the cost of production of an egg was Rs.10.83 and the
farmgate price was Rs. 8. at that time farmers faced a loss of Rs. 2.83
per egg and this was the situation most of the time.
This is the main reason for the decline in production. The price of
poultry feed and other inputs were increasing rapidly and if the
authorities wished to keep egg prices low, they should reduce the price
of inputs and cut tax imposed on them, he said.
“Prices of all commodities are increasing and complaints about the
high price of fish were few. Consumers pay Rs. 20 for a cup of plain tea
without making any complaint. So eggs at Rs. 13 to Rs14 each is a
reasonable price for farmers and consumers.
The Egg Club is an organisation formed to represent layer farmers. We
cannot control supply and manipulate the market,” he said.
- GW |