In Thailand, chicken egg exports are being suspended in a bid to reduce skyrocketing prices on the domestic market, Agriculture Minister Theera Wongsamut said.

The National Egg Board on July 5 resolved to adopt the temporary measure. Theera, who chairs the board, said the freeze on egg exports will not affect contracts which have already been sealed.

Thailand exports about 100 million eggs a year, about 1% of its domestic consumption which reaches 9.7 billion eggs.

The minister said other resolved short-term measures are to extend the working life of layer hens to 82 weeks from 78 weeks to maintain supplies, the supply of 50,000 spring hens a month to small and medium farmers by the ministry, negotiations with hen importers to reduce the price of layer hens from THB154 (US$4.75) a hen to THB149 (US$4.6) and the price of spring hens from THB30 (US$0.93) to THB21 (US$0.65).

The board said it will assign Kasetsart University to study the restructuring of the layer hen import quota. There are nine private firms with licences.

Permanent Secretary for Agriculture Yukol Limlaemthong said the extended working life of layer hens will result in an additional supply of 1.2 million eggs a day.

The export suspension and the period extension measures will increase domestic egg supplies and bring down egg prices.

"To be fair, the highest price for eggs should not be more than THB3.2 (US$0.1) each based on production cost and the proper margin," he said, adding the ministry will tackle price distortion as soon as possible.

The current price of size three (moderate) eggs is THB3.8 (US$0.117) an egg, size two are priced at THB3.9 (US$0.12) an egg and size one (biggest) egg are more than THB4 (US$0.123).

The surge in egg prices has forced Prime Minister Abhisit Vejjajiva to assure the public the Thai government is not ignoring the problem.

Abhisit has instructed agencies to examine the problems and address them to ensure egg producers are appropriately compensated while at the same time not overburdening consumers.