February 11, 2009
Malaysia high egg prices seen as unsustainable
Malaysia's egg prices may have raised to record levels, but the high prices may not be sustainable, according to OSK Research.
Prices are expected to fall to 26-28 cents in the coming months, mainly because of slowing demand after the festive season and chicken feed prices have lowered to the price levels prior to their increase, the research house said.
Egg prices reached a record high since November 2008, selling at 31.67 cents from the previous average of 23.3 cents each. The price increase was driven by a severe shortage of egg supply after corn and soy prices peaked in July 2008.
Margins of egg companies will normalise as egg prices retreat slowly, said OSK Research.
