Shortage of vegetables & fish pushes up egg price

Egg farmers are now making a profit, thanks to the recent price increase. However, it will take time for them to recover the losses they incurred in recent months when they sold eggs below the cost of production. Poultry sector stakeholders see the recent egg price hike as a seasonal phenomenon. The supply of fish and vegetables is low at this time of year, but increases in the winter season.

A number of poultry farmers in the Cumilla and Noakhali regions said that they made losses for five months when there was too much egg production, and the price was low. In July, the writer interviewed other farmers in the Rajshahi region. At that time, they expressed their frustration at the low price of eggs, saying that such low prices would cause the poultry industry to shrink. Their prediction was correct. According to rough estimates by industry stakeholders, 20 to 30 per cent of egg farmers have stopped production after months of losses. This has resulted in the present high price of eggs.

Mohammad Wasiuddin (50), an egg farmer of Purbo Nurpur in Noakhali Sadar, said on 17 October: "We poultry farmers can sustain our business if the price at the gate of the farm is around Tk 11 per egg. But we had to sell eggs as low as Tk 7 per egg for months, when the production cost was Tk 10. I made a loss of taka six lakh (Tk 600,000) while running a farm of 2,000 hens in the past six months." On 16 October, he sold eggs at Tk 10.9 per egg. He mentioned that he also incurred a huge loss due to flooding in 2024, but he did not give up. "We see a better price as there is less supply of vegetables and fish just before the winter vegetables come to the market. We fear that the price will fall again once they are abundant," he said.

Mesbah Uddin Sujon (38), owner of 10 sheds that can accommodate 20,000 birds in Baro Remdevpur in Kabirhat upazila, Noakhali, sold 10,000 hens two months ago and stopped egg production in order to avoid further losses. "Many farmers like me have withdrawn from the business, because they made losses during the rainy season when they are supposed to make a profit. My estimate is that almost 30 per cent of egg farms have been closed. The current price hike is logical. There is a production shortfall but higher demand," he expressed his views.

Once an expatriate in Singapore, Jasim Uddin Sarkar (49) returned home to Bokrikandi of Debidwar upazila in Cumilla during the pandemic, and began egg farming with 2,000 hens. "Farmers like me started or increased egg production because of the high prices which were seen earlier. Most of them suffered losses due to the fall in price, and some withdrew from the business. Some of them are bankrupt. I invested more money from other sources. The recent price rise has been a relief for us," he pointed out.

Mofizul Islam (60), a farmer of Omborpur in Chandina municipal area, Cumilla, has invested Tk 4.0 million to set up a farm of 3,000 hens. "In the recent past I made a loss of about Tk 2,000 to 2,500 every day. Four farms in my surrounding area have been shut down." Regarding allegations of price manipulation, he argued that if a syndicate of egg producers could control the egg price, no one would sell at a loss.

On the fluctuating price of eggs, Rushad Faridi, an assistant professor of economics at Dhaka University, explained that economists expect that the price will be high when demand exceeds supply, and the price will be low when supply exceeds demand. He said, "The demand-supply situation determines the price, not any syndicate. If the syndicate is so powerful, why did it accept losses for months?" He said that the government should not intervene in the market by setting a maximum or minimum price; rather, the government should play the role of a regulator to promote fair play in the market.

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