THE retail price of egg increased by 25 per cent in the past three weeks, as poultry farmers attributed it to the closure of many poultry farms in the country due to harsh business environment.
It was also due to further increase in the prices of maize and soyabean, key ingredients used in poultry feed production.
Food prices have generally increased across the country in the past year due to the depreciation of the naira and a rise in transport costs. The increase in egg prices could negatively affect the pastry industry, which is also experiencing similar stress from high input prices. In the past few weeks, there has been a noticeable rise in the price of eggs across the country. A simple survey of egg prices per crate in the last three weeks reveals an increase of around 17% in one month at farms. Currently, an egg retails for N200 in June from N150 a month prior- this represents a 25% increase in the retail price in just one month.
Most traders attributed the increase to scarcity stating there are not enough eggs being produced currently. The allegation of scarcity due to the closure of poultry farms mirrors a similar statement by the Poultry Association of Nigeria (PAN) earlier in the year, stating that around 50% of poultry farmers in the country have shut down due to rise in input prices.
A poultry farmer, Mr. Samuel Adebayo confirmed the allegation of a drop in production stating that most smallholder poultry farmers have closed shop due to the high cost of inputs. Also, the current Secretary of PAN, Mr. Temitayo Oguntola did not rule out scarcity being responsible for the hike but acknowledged the increase in inputs especially feeds. He said, “I attended a conference recently and according to the presentation, the poultry industry has contracted by 23% in the last year.”
Speaking, Ms. Isioma Blessing, a poultry farmer and former chairperson of the Poultry Association of Nigeria (PAN), confirmed the price increase saying the farmgate price of a crate of eggs has increased in the past three weeks. She said, “In April and even in May, we were selling a crate of egg around N3,000 and N3,300 but currently we sell around N3,800 and N4,000”
However, she disagreed with the idea that the current hike in prices was due to scarcity. The scarcity resulting from the closure of poultry farms accounts for approximately 15% of the current hike in egg prices.
