Layer-import policy stirs egg market
The government's policy since 2010 to open up imports of breeding stock for laying hens has led to an oversupply of eggs on the market and cost the industry more than Bt10 billion this year, with a heavier loss expected early next year, according to a tr
“I expected the result after the liberalisation policy for importing breeding stock. They have been hungry for imports without any direction. At last, there are troubles,” Mongkol Pipatsattayanuwong, president of the Association of Hen-Egg Farmers, Traders and Exporters, said yesterday.
The policy has caused egg prices to plummet. There are now about 700,000 breeders shipped in per year by 22 importers, compared with 400,000-500,000 per year by nine importers earlier.
At present, eggs are 60-70 per cent in oversupply in the country. Farmers are trying to export eggs and are searching for other means to relieve the glut.
“The policy was formulated in mid-2010,” Mongkol said. “During the floods last year, these chicks continued to grow and became hens in mid-2012. The number of eggs will likely peak early next year. From now to the end of this year, we will experience a loss of more than Bt10 billion or Bt100 per hen.”
Annop Akaranithiyanont, president of an association of egg farmers, said it had not done anything yet while waiting to see how the government will resolve the |problem after small farmers submitted a complaint on Tuesday.
The association agreed with small farmers on the egg oversupply and requested government support, he said. It could come in the form of a pledging scheme or, in the worse case, a plant for powdered eggs.
The powdered-egg plant should be the last resort for such a surplus situation because of the product’s low prices, he said.
There are about 40 million eggs supplied to the market per day and about 30,000-40,000 layer-hen farmers after new players entered the industry.
Farmers cannot cover their cost of Bt2.60 per egg, as big eggs sell for Bt2.30-Bt2.40 each and medium sizes at Bt2.20.
The established egg farmers have been able to sell their produce as they have customers in hand, while the newcomers may not be able to sell anything, Annop said.
Egg farmers are waiting for the government to give them solutions, which may include control of breeding stock.
If they did not receive any help from the government, the association will make a move, he said.
