Kazi Farms leading the way in egg production amid market challenges

When I look at Bangladesh's egg market, it is clear that the dynamics are complex and driven by fluctuating demand. Every day, thousands of small farmers and a few large companies collectively produce around 45 million eggs. 

However, demand is never constant. At present, supply exceeds demand, which has pushed egg prices below production costs. Just last year, the situation was the opposite—demand outpaced supply, and prices rose sharply. This volatility is something that no producer, including Kazi Farms, can control. While today's low prices may seem beneficial to consumers, they are unsustainable and will ultimately drive many farms out of business.

In terms of logistics, it is important to clarify that Kazi Farms produces only a small fraction of the eggs consumed nationwide. The bulk comes from thousands of small rural farms, with traders transporting eggs to urban markets. This means that urban prices must remain higher than rural prices to incentivise traders; otherwise, eggs simply won't reach city markets. We saw this last year when a government-imposed price ceiling disrupted the flow of eggs to Dhaka. 

Traders, unable to make a profit in the capital, redirected their supplies to other towns where no ceiling was enforced. Such short-sighted policies ultimately hurt consumers by creating shortages rather than solving price issues.

Food safety is another area we take very seriously. At our farms, hens are fed diets free of animal protein, which significantly reduces the risk of bacterial contamination such as salmonella. We also avoid unnecessary antibiotics, ensuring that our Kazi Farms Kitchen branded eggs are guaranteed free from antibiotic residues. We strictly adhere to government regulations, as maintaining safety and hygiene is central to our operations.

Despite our scale, the majority of Bangladesh's eggs still come from small and medium farms. Right now, all producers, regardless of size, are operating at a loss due to low prices. Smaller farms, in particular, face frequent disease outbreaks and higher costs linked to unnecessary antibiotic use. Larger farms, with better biosecurity and disease prevention measures, are more efficient. 

That is why we have made it a priority to train small farmers in hygiene and biosecurity practices, even publishing and distributing booklets on these topics to thousands of them.

As for niche categories like organic or free-range eggs, the situation in Bangladesh is complicated. Free-range production is risky because outdoor access exposes hens to diseases like avian influenza. Moreover, "organic" remains undefined by local regulations, and we prefer not to mislead consumers by using loosely defined labels.

Climate change is another challenge we face, especially with rising temperatures and disease risks. To mitigate this, we've equipped all our farms with tunnel ventilation and evaporative cooling systems, which help manage heat stress and sustain production during the summer, though they do not eliminate seasonal impacts entirely.

Technological innovation is also shaping our approach. In response to calls from the government to reduce production costs, we are preparing to introduce white eggs alongside our brown eggs. White eggs are lighter and cost less to produce, which will help lower costs for consumers.

On the issue of nutrition awareness, I believe Bangladeshi consumers already recognise eggs as a low-cost source of protein, so our focus remains on maintaining supply rather than education campaigns.

Macroeconomic challenges, especially rising feed costs and currency depreciation, have also impacted our industry. The Russia-Ukraine war spiked feed prices globally, and while other countries saw prices normalise, Bangladesh did not because the Taka lost 40% of its value against the Dollar before the last election. 

This stemmed from government policies—large fiscal deficits and forced low-interest lending—that typically lead to depreciation and inflation. Thankfully, the current government has stabilised the Taka by raising interest rates, and we hope this commitment to macroeconomic stability continues, because inflation is usually policy-driven, not caused by private companies.

Looking ahead, I am optimistic about the egg market's long-term potential. Over the next decade, demand will likely double, though year-to-year fluctuations will remain tied to economic conditions and consumer preferences. For instance, when fish harvests peak, egg demand tends to drop, and when beef prices rise, egg demand increases. 

These shifts are natural, and we see them as part of a cyclical market. Despite the ups and downs, our focus is firmly on long-term growth, steady expansion, and ensuring that we remain a reliable source of safe, high-quality eggs for Bangladeshi consumers.