December 5, 2013

The purchasing power of Brazil's egg producers has decreased due to a decline in product prices and increase in corn price.

According to Brazil's Centre for Advanced Studies on Applied Economics (CEPEA), majority of egg producers are unable to cover production costs and many of them are already operating at a loss.

Both brown and white egg prices dropped by 10% last month in the Greater São Paulo region.

On Friday, (Nov 29), the average price for a box containing 30 dozen white eggs and brown eggs is BRL47.41 (US$19.83) and BRL50.30 (US$21.04) respectively. Similarly, the average price of corn marketed in Campinas, São Paulo, has risen by 7%.

According to CEPEA's researchers, the pressure on egg prices continues as a result of high demand. In addition to the significant volume of small and medium sized eggs produced, the supply of larger eggs is also gradually increasing owing to production of new hens.

Corn and soy exports are moving at a strong pace and the appreciation of the dollar against real factors are mainly determining the prices of these commodities, CEPEA said.