August 23, 2023

 

Surge in egg prices adds US$5.1 million burden on Bangladeshi consumers in one week

 

Experts from Bangladesh's poultry industry convened at a workshop organised by the Economic Reporters Forum (ERF) to address the sudden spike in egg prices that has put an additional financial burden of BDT 560 million (~US$5.1 million; BDT 100 = US$0.91) on consumers within just a week, The Financial Express reported.

 

Shamsul Arefin Khaled, president of the Bangladesh Poultry Industries Central Council (BPICC), discussed the pressing issue during the workshop titled 'Crisis in the Poultry Industry: Protecting Marginal Farmers and Reducing Poultry Production Costs,' held at the ERF Auditorium in Dhaka.

 

Khaled, while responding to queries, suggested that the surge in egg prices could have translated into consumers paying an extra BDT 2.00 (~US$0.018) per egg during this period of price volatility.

 

With daily egg production reaching 40 million units by farmers and companies, Khaled said that consumers might have collectively contributed an extra BTD 80 million (~US$729,000) daily, resulting in a potential accumulation of BDT 560 million (US$5.1 million) in a week.

 

The majority of profits, Khaled pointed out, are being claimed by middlemen and retailers, highlighting the importance of reducing feed costs to alleviate production expenses.

 

He also addressed the challenges faced by poultry feed millers, particularly concerning the customs procedures for importing essential components like soya meals.

 

Khaled advocated the removal of import barriers to help the industry lower feed prices and called for increased transparency in egg pricing at every stage of production.

 

Responding to a question about regulation in the sector, Khaled noted that the sector is gradually undergoing regulation, with the Department of Livestock (DLS) holding meetings with the industry every two months to gather information.

 

Kazi Zahin Hasan, president of the Breeders Association of Bangladesh (BAB), said that market trends are influenced by demand and supply in an open market economy.

 

Kazi Zahin, who also owns Kazi Farms, one of the prominent poultry conglomerates in the country, discussed the possibility of importing eggs but cautioned that it might adversely affect the local industry.

 

He stated that the demand for day-old chicks had declined from a higher figure a few months ago to 13 million.

 

Last year, following egg market volatility, the Directorate of National Consumers Right Protection compiled a report indicating that key poultry companies, including Kazi Farms, had played a role in driving up egg prices.

 

The Bangladesh Competition Commission initiated legal proceedings against these poultry companies, and the trials are ongoing.

 

Experts from various associations, including the Breeders Association of Bangladesh and the Feed Industries Association, discussed the significant impact of feed costs and other factors on poultry production expenses and consumer prices.

 

Despite price fluctuations, market sources noted a decline in egg prices from BDT 180 (~US$1.64) per dozen the previous week to BDT 150 – BDT 160 (~US$1.37 – ~US$1.46), attributed to spontaneous market intervention by the authorities. The workshop provided a platform for industry experts to address these critical issues and seek potential solutions to stabilise the market.

 

-      The Financial Express