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AGRIBUSINESS
Surplus of two million a day adds to pressure
POST REPORTERS
Egg producers are crying foul after being hard hit by operating losses from rising oil prices, higher production costs, a sluggish economy and oversupply.
The prices of eggs at the farm are now about 2.10 baht each, down 30-40 baht from May, while the production cost is 2.60 baht. The result has been operating losses for both small and medium-sized operators, according to Mongkol Pipatsattayanuwong, president of the Association of Hen-Egg Farmers, Traders and Exporters.
Thanks to advanced processes and effective farm management, Mr Mongkol said, productivity has increased significantly, with one hen currently producing up to 300 eggs a year from 280 eggs earlier.
About 27-28 million eggs are released into the market each day, with daily consumption of only 25-26 million, leaving a surplus of two million eggs per day.
According to Mr Mongkol, producers have exported some surplus eggs, but have been forced to take losses on the remaining stock.
Last year Thailand exported 684 containers, or about 222 million eggs, mainly to Hong Kong. Volume remains low as the competition is stiff and dominated by large producers, including China.
Traders have been trying to sell more eggs to the Middle East, but the volume is still small as these countries prefer smaller eggs.
Worse still, according to the association, the sector faces higher oil prices and rising prices of animal feed such as maize and soybean meal.
Maize and soybean meal represent up to 70% of the cost to produce animal feeds, for which prices are up more than 50% from last year.
Mr Mongkol said Thai egg consumption also was dropping because of belt-tightening by consumers in the bearish economy.
Association statistics shows that egg consumption among Thais remains low at 160 per head per year. The Japanese eat 350 eggs, Singaporeans 270-280, Malaysians 230-240 and Hong Kong residents 210 eggs.
The government recently outlined a five-year plan to encourage everyone to eat 200 eggs a year, or 40 eggs more than they currently eat.
''Under the current situation, all egg farmers and related parties should team up with one another to address the problems,'' he said. ''The situation is expected to go from bad to worse, if every party stays apart without proper cooperation.''
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