Egg producers decry import plan, see price slide by year-end

The Hen-Egg Farmers, Traders and Exporters Association has slammed the government's plan to import eggs to combat rising retail prices, saying the measure would hurt farmers in the long run, while the problem of rising prices will be eased in any case before the end of the year.

Association president Narong Jiemjaibunjong said egg prices would drop soon after the end of |the rainy season. Widespread disease in layers caused by incle-|ment weather has lowered egg production in the past few months. However, the supply will increase soon after more hens have been imported.

Production is expected to increase to between 27 million and 29 million eggs per day by the third quarter from the current 24 million to 25 million eggs.

"The plan to import eggs is nonsense and will hurt farmers. The current high price of eggs has been caused by disease. However, it should be relieved soon," Narong said.

He added that the price of eggs in many countries had also increased because of higher production costs. For instance, the price of eggs in Malaysia is now quoted at Bt3.20-Bt3.40 each.

The import of eggs would also increase the risk of infections from overseas.

Narong said egg exports had dropped gradually in the past |three years under the govern-|ment's plan to keep prices low. Export volume is expected to be |70 million to 84 million eggs this year, a drop from 420 million in 2008, 350 million in 2009, and 144 million last year. Shipments now average 6 million to 7 million eggs a month.

Normally, Thais consume about 26 million to 27 million eggs a day. Narong pointed out that the daily output of eggs in Thailand would increase significantly to between 30 million and 40 million next year, which would hurt farmers because of an oversupply.

The government has failed to set up sustainable measures to deal with the changing price of eggs. It has only considered the problem from consumers' point of view, without concern for farmers, he said.

HEN DISEASES

According to the association, the price of eggs has increased to more than Bt3.10 each because of reduced supply resulting from hen diseases. Lower production has pushed up production costs by 15 per cent from Bt2.52 per egg to Bt2.90. Therefore, the retail price of eggs has to increase in the short term to cover losses for farmers and traders.

The association added that |the price of feed meal had also increased significantly this year because of higher crop prices. Feed meal accounts for 75 per cent of the production cost of eggs. The increased price of maize, which accounts for 55 per cent of layers' feed meal, from Bt5 to Bt10.85 a kilogram has created a higher burden for farmers.

To ensure balanced benefit for farmers and consumers, the association has called for the government not to intervene in the pricing of eggs. But if it insists on intervening, it should seek measures to reduce farmers' production costs rather than control prices.

Chaisaks Boonprasopthana-chote, chief executive officer of |Thai Foods Group, said farmers had to change their management practices to cope with environmental changes, particularly unusual weather.

"Farmers with good manage-ment practices will enjoy high |hen-survival rates, while layers |will produce eggs as normal. Successful farmers can reap benefits from the trend of rising prices as well," he said.

Chaisaks pointed out that the prices of hens and eggs would peak within the next two months in line with overwhelming demands from children returning to school and the high export season, particularly to disaster-hit countries.