February 7, 2013
The wholesale price of eggs in Saudi Arabia has risen by 30%, with further increases likely as temperatures continue to fall.
A carton of eggs recently sold for SAR110 (US$29) but rose to SAR147 (US$39) and then SAR160 (US$43). Traders believe the price will rise to more than SAR167 (US$45).
Local newspapers reported on Monday (Feb 4) that the price of a tray of 30 eggs rose from SAR12 (US$3.2) to SAR16 (US$4) in a two-week period. The price of one egg was SAR0.47 (US$0.13) in the last quarter of 2012 compared to SAR0.36 (US$0.10) in the last quarter of 2011, and then jumped to SAR0.50 (US$0.13) in 2013, according to reports.
Abdul Lateef of Lama Centre, a leading bulk trader of eggs, said that traders are not raising prices. He said farmers have been setting prices. The price fluctuation during winter is common, says Ibrahim Khalil of egg trader Sada Cold Store. He said prices will continue to rise until the summer holidays when consumer demand falls and production rises. Poultry prices have remained stable on local markets. The price of eggs in the Kingdom has also been affected by global factors including the rising price of soy, corn and other poultry feed.
There are five different breeds of hens that lay eggs in Saudi Arabia including Lohmann, largely used in Jeddah and western region, and Hyline and Hisex used in Riyadh and Qassim regions. Lohmann hens produce fewer eggs in winter compared to other breeds.
Saudi Arabia is the largest producer of poultry and eggs in the Middle East and is self-sufficient in egg production. The Kingdom also exports eggs to neighbouring countries. The farms in Qassim, Makkah and Riyadh area cater for over 74% of the Kingdom's needs. There are over 500 poultry farms in the country, producing about 900 million eggs a year, according to data from the poultry industry.
The price of eggs is not the major concern for many Asian and other foreign workers who run small kiosks and eateries in the city. They are more concerned about the SAR2,400 (US$640) a year levy proposed by the Ministry of Labour for every foreign worker at a company over the government's Saudisation quota.
