"Prices paid to producers in the Midwest for large cartoned shell eggs rose $0.35 to $3.77 per dozen with a higher undertone. The California benchmark for large shell eggs increased $0.53 to $4.34 per dozen with a firm undertone.” The source of this quote is the United States Department of Agriculture, September 30, 2022 publication of Egg Market Overview.
To those who may be unfamiliar with the term “firm undertone,” it means that there are solid reasons why egg prices went up, and it had nothing to do with price gouging. Not a single poultry farmer here has been accused by the US government of causing such a rapid increase of egg prices. The US Department of Agriculture understands that egg prices went up for a reason.
According to Numbeo, an online cost of living database, Bangladesh is one of the countries where eggs are cheap. Eggs are the most expensive in Switzerland. Bangladesh is number 100 on the list, meaning that there are 99 countries where eggs are more expensive than in Bangladesh.
Bangladesh is blessed with an efficient poultry industry. There are 6 million Bangladeshis earning and supporting their families from the poultry business.
Why did egg prices go up in Bangladesh, and at a much higher rate in the rest of the world? In India, the Economic Times reported on June 28 this year that egg prices in India shot up because of “unabated inflation in poultry farm input costs.” The same is true for Bangladesh and the rest of the world. Make no mistake, egg prices will continue to go up in every country for quite some time.
The Russia/Ukraine war is the root cause of the worldwide inflation. Ukraine was a major exporter of wheat, but it has been shut down. This has caused maize to almost double in price, as maize is also starch, and is a substitute for wheat. Maize is the major ingredient used in poultry feed.
Russia, a major exporter of oil, has seen its oil exports cut off. Diesel has gone up everywhere in the world, causing supply chain problems. This has not only happened in Bangladesh, but in other countries as well.
In August, following the diesel price increase, trucks went on strike in various parts of Bangladesh; this was reported in the news media. The unavailability of trucks caused a sudden interruption in the supply of eggs (and other perishable foods like tilapia fish). Many perishable foods increased in price suddenly after the diesel price increase, not just eggs.
India and China now have very attractive oil deals with Russia, which will give them great advantages against Bangladesh. Ours is a bad neighbourhood. Our PM has been very successful navigating these difficult waters. She deserves credit; we have escaped the fate of Sri Lanka and other countries which have fared worse.
Bangladeshis love fish, which has incidentally risen in price for the same reasons as eggs. Eggs are still the cheapest source of protein. The poultry industry must be subsidized, not prosecuted for imaginary collusion.
Kazi Shahid Hasan is a retired investment banker living in NewYork.
