Increase in demand leads to egg price rise

Recent rains have inundated many vegetable fields, reducing the supply of vegetables. Higher prices of vegetables have increased the demand for eggs, which is why the egg price has also increased.

Farmers have incurred losses over the last few months, when egg prices were low, and are now relieved that prices have increased.

"Demand for eggs has risen after six months of lower price, in fact," said Zahidul Islam (38), a layer farmer in Gobindopur, Shokhipur, Tangail, who has been farming for 15 years. On 12 August, he said that the price per egg (received by farmers) was Tk 9.5, which was still lower than the production cost of Tk 10.25-10.50, depending on the productivity of farmers.

He owns  8,500 layer hens. He mentioned that the average loss he incurred for each piece of egg was Tk 2-2.5, and the lowest price at which he sold eggs was Tk 7 per egg. He borrowed Tk 20 lakh from the bank. Asked why the price was rising during this period, he said, "The prices of meat, fish, and vegetables have increased recently, so the low-income people are buying eggs in higher numbers."

The estimated production of eggs in the country is slightly over 4.5 crore a day, as against the demand of 5 crore pieces a day, according to the estimate of the government's livestock department. However, the total number of eggs produced in the country is uncertain, as rural households own a large number of egg-laying backyard chickens, but the exact number is unknown. What is well-accepted, however, is that the demand for eggs (and the price of eggs) always increases when the price of vegetables increases.

Mojnu Miah (33) of the Sailbaith area in Madhupur took over his family's farm, which has 4,000 hens. His opinion is that the production of eggs has decreased by 15-20 percent because many farmers who lost money over the last few months have shut down their farms. "The recent rains destroyed vegetables in many places. As a result, demand for eggs has increased."  According to him, marginal farmers would not be able to do business sustainably unless the farmgate price of each egg currently stands at Tk 11.

Undergraduate student Sabbir Hossain (24) from Idilpur village in Madhupur said that the family-owned layer farm is now a loss-making project. "It is good for farmers that the price has increased a bit, but this trend may not continue for more than 2-3 months," he added.

Maulana Zahidul Islam (38), a trader who collects eggs from different farms in Shokhipur and sends around 40,000 of eggs to Gazipur and Dhaka city, said demand for eggs has increased recently. "I get 10 paisa for each egg from the buyers, and price fluctuation has no implication for me. I can make a profit while selling eggs at he retail price locally." When asked if there is any  cartel or syndicate that controls the price, he said, "I have never been told to raise or slash the price."

Trader Rahim Uddin (58) of Gonogram in Ghatail recalled that the egg price decline began in the previous winter season, when there were an abundance of vegetables in the market. "Even buying eggs at Tk 7 per egg, I could not sell higher numbers to wholesalers because of lower demand," he said, ruling out the possibility of price manipulation by any syndicate.

President of the Breeders' Association of Bangladesh, Mahbubur Rahman, observed that there was no stability in the egg market due to the higher price of Dollars, increased costs of imported feed materials, and other associated costs. "Producers complied with the government order to sell eggs at ceiling prices. But the ceiling for selling eggs did not protect farmers from losing money when the price was low. In fact, we don't hear people talk about farmers' interests when the price nosedives," he said.

The association has sent a letter to the Directorate of Consumer Rights Protection, informing them that a 30 percent profit should be added to the farmer's cost to calculate the farmer's maximum selling price for the sake of sustainability.