October 22, 20114

Egg prices in Singapore fly as supply from Malaysia shrinks

Egg prices in Singapore have soared due to tight supplies from neighbouring Malaysia at a time when demand leading to this month's Deepavali or Festival of Lights celebration is high.

Egg deliveries from Malaysia have dwindled after exports from the Charoen Pokphand Jaya farm in that country were suspended by Singapore over health issues.

It was the third Malaysian farm to be suspended this year owing to the discovery of eggs contaminated with the Salmonella Enteritidis bacteria, which cause food poisoning. Singapore suspended deliveries from Chong Ne Nam farm in March and from the Teo Seng Farm 8 in July.

A FairPrice store chain spokesman was quoted by the Malay Mail as saying that egg prices jumped by around 12% in the past 6 ½ months due to "reductions in supply and economic conditions," among other things.

The chairman of the Eggs Import/Export Trading Association, Tan Lau Huah, said prices started to head north in August, a month after the second farm, Teo Seng Farm 8, was suspended.

He said the wholesale price for a dozen of eggs now stands at a record high SGD2.40 (US$1.88).

"We face higher costs from our Malaysian suppliers and demand has risen because of festivities this month, so we have no choice but to raise prices," he was quoted as saying.