January 16, 2013

Despite a steady and abundant supply in Ho Chi Minh City, some businesses that are not under the price subsidised programme have suddenly hiked the price of chicken and duck eggs.

To discuss this sudden increase of egg prices, the Department of Industry and Trade in HCMC on January 11 held a meeting with various other departments. At the meeting, delegates concluded that the hike was unreasonable as supply was both stable and abundant.

Nguyen Nguyen Phuong, head of the Commercial Management Division under the Department of Industry and Trade, said that the price has been going up every day since Solar New Year. After January 9, price of a pack of 10 eggs went up VND2,000-3,000 (US$0.10-0.14), and continued to surge by VND1,000-2,000 (US$0.05-0.10) the two following days.

Chicken eggs at the CP Company have risen by VND3,000 (US$0.14) to reach VND29,300-29,600 (US$1.41-1.42) for 10 eggs, which is VND4,000-6,000 (US$0.19-0.29) higher than the subsidised price. Under the City's price subsidised programme, the cost is VND23,500 (US$1.13) for 10 chicken eggs and VND30,500 (US$1.46) for 10 duck eggs.

Le Thi Ngoc Dao, deputy director of the Department of Industry and Trade, said that by the end of December, the egg supply in the City had reached 3.1 million a day and at present is 3.05 million a day. The egg supply by large businesses like Ba Huan, Thanh Vinh Dat is still stable under the price subsidised programme. The demand for eggs at large supermarket chains like Saigon Co.op, Vinatex, Satra, Maximark, Citimart has surged by 30-50%. Dao confirmed there is no scarcity of eggs--one of the reasons for a price increase.

According to the Department of Agriculture and Rural Development in HCMC and poultry breeders associations in neighbouring provinces, the price of poultry feed is quite steady. Businesses are paying breeders only VND1,500-1,550 (US$0.07-0.074) an egg.

According to a breeding enterprise, farms are now profiting at VND1,600 (US$0.08) per chicken egg, which does not justify the sudden and continuous increase in the price of eggs recently. At the meeting, departments confirmed abundant and steady supply of eggs from now until the Tet festival. Consumers should buy eggs at supermarkets and shops under the price subsidised programme.

Le Ngoc Dao added that if egg prices do not reduce in the next few days, the Domestic Market Department under the Ministry of Industry and Trade might grant quotas to businesses to import eggs.

According to the Trai Viet Company, who specialises in export-import of eggs, if the ministry permits businesses to import eggs, it will take only 3-4 days for them to arrive in Vietnam. The price of imported eggs will be about VND20,000 (US$0.96) for a pack of 10.

Dao Thi Lan Huong, director of the Department of Finance in HCMC, said it is unacceptable that some businesses have pushed the price up by VND8,500 (US$0.41) per 10 eggs, within just a week. The City will ask them to explain the price increase and will propose to authorise organs to deal with them if they fail to present a sound reason. From now until Tet Lunar New Year, HCMC will fix the subsidised price of a chicken egg at VND23,500 (US$1.13) and duck egg at VND30,500 (US$1.46) per pack of 10.