Recent rains inundated many vegetable fields and reduced supply of vegetables. Higher prices of vegetables have increased the demand for eggs, which is why the egg price has also increased. Farmers have made losses over the last few months, when the egg prices were low, and are relieved now that the egg price has increased.
“Demand for eggs has risen after six months of lower price in fact,” said Zahidul Islam, 38, in Gobindopur of Shokhipur, Tangai who has been a layer farmer for 15 years. On August 12 he said that the price per egg (received by farmers) was Tk9.5, which was still lower than the production cost Tk10.25-10.50, 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 Tk2-2.5 and the lowest price at which he sold eggs was Tk7 per egg. He borrowed Tk20 lakh from 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 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 huge number of egg-laying backyard chickens, but the number is uncertain. 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 of Madhupur, took over his family business, a farm of 4,000 hens. His opinion is that production of eggs has decreased by 15-20% 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, the marginal farmers would not be able to do business sustainably unless farmgate price of each price of egg stands at Tk11 at present.
Undergraduate student Sabbir Hossain, 24, of Idilpur village in Madhupur said that the layer farm owned by his family 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 profit while selling eggs at he retail price locally.” When asked if there is any cartel or syndicate which controls the price, he said, “I have never been told to raise or slash down price.”
Trader of Gonogram in Ghatail Rahim Uddin, 58, recalled that the egg price falling started in the previous winter season when there were abundant vegetables in the market. “Even buying eggs at Tk7 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 Breeders’ Association of Bangladesh Mahbubur Rahman observed that there was no stability in the egg market due to higher price of Dollars, increased costs of imported feed materials and other costs involved. “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% profit should be added to farmer’s cost to calculate the farmer’s maximum selling price for the sake of sustainability.