September 6, 2010

Taiwan to sell eggs to HK to ease supply glut

Taiwan's Council of Agriculture said Friday (Sep 3) that it is planning to sell eggs to Hong Kong in an attempt to alleviate the impact from an oversupply in the domestic market.

Hsu Kuei-sen, head of the Council of Agriculture (COA)'s Department of Animal Industry, said the plan to export eggs to Hong Kong, where about six million residents consume mostly imported eggs, is expected to stabilise domestic egg prices by increasing consumption.

Hsu said the high summer temperatures have boosted egg production and caused supply to outstrip demand in the local market, sending domestic egg prices into a tailspin.

Currently, Taiwan produces about 18 million eggs a day, compared with daily consumption of 17 million, Hsu said.

According to the COA, since late August, the average domestic wholesale egg price has fallen to about TWD28 (US$0.87) per kilogramme from an April peak of TWD42 (US$1.32).

Hsu said the current price does not even cover the cost of production.

Hong Kong is willing to buy eggs from Taiwan at a price of no more than TWD30 (US$0.94) per kg, which is still lower than cost, Hsu said, but adding that the exports will help local egg production to reach a balance between supply and demand in the domestic market.