Demand for eggs outpaces supply amid production data mismatch
While news of imports has led to a slight reduction in egg prices, consumers still have to pay Tk14 or more per egg, retailers say
The supply of eggs cannot meet demand as consumers are increasingly relying on this easy source of protein due to the rising prices of essential commodities – from fish and vegetables to almost everything else in the market, according to stakeholders.
The demand for eggs has increased, while its daily production has declined by approximately 50 lakh pieces due to severe flooding that has affected poultry farms in the south-eastern region, they say.
As market instability has persisted for over a month, the Department of Agricultural Marketing set the price of each egg at Tk11.87. However, despite the effort, the market remained uncontrolled, and prices continued to rise. In response, the government approved the import of 4.5 crore eggs.
While news of imports has led to a slight reduction in egg prices, consumers still have to pay Tk14 or more per egg, retailers say.
According to data from the United Nations Food and Agriculture Organization, the current daily demand for eggs in Bangladesh is 5 crore. However, according to the Bangladesh Poultry Industries Central Council, egg production stands at 4.5 crore. Due to the reduction of 50 lakh eggs in production caused by flooding in the south-eastern region, the daily production number has now dropped to 4 crore.
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"There is no alternative but to increase local production or eggs as quickly as possible to normalise supply"
However, the Department of Livestock Services provides different data on egg production. This government agency states that egg production is 6.3 crore per day, and even if production decreases by 50 lakh, bringing it down to 5.8 crore, it still exceeds the daily demand, its officials say.
They say they were against the import of eggs. But the sudden floods increased pressure on the egg market as prices of fish, vegetables, and other essentials already rose, which led to temporary instability in the egg market, said the officials.
They believe that once the rains subside and winter vegetables start entering the market, egg prices will eventually come under control.
Reason for data mismatch
Mohammad Reazul Haque, director general of Department of Livestock Services, told TBS that daily egg production is 6.3 crore. "The primary reason for the discrepancy between the producers' data and the government's figures is that duck and quail eggs are not included in the private estimates. However, at least 1 crore eggs from these two sources are added to the supply chain daily."
He noted that the prices of all types of food products are high in the market. "The supply of fish is low, and vegetable prices are higher. Due to unexpected floods and rainfall, winter vegetables have not yet entered the market. This pressure has affected the egg market, increasing demand."
Reazul Haque thinks the situation is temporary. "Once vegetables begin to become available in the market, demand will decrease, and the market will normalise."
He, however, noted that to adequately meet the demand for eggs, production needs to be increased by an additional 1 crore pieces.
Although the government has been reporting a surplus in egg production for several years, there has been recurring instability in the egg market now and then. According to government estimates, egg production exceeds demand by approximately 80 lakh, while private estimates indicate that daily production is at least 1 crore less than the actual demand.
Mahbubur Rahman, president of Breeders Association Bangladesh, thinks that the government's decision to allow imports for a temporary period in the current situation is a positive step.
He emphasised that there is no alternative to increasing local production as quickly as possible to normalise the supply.
Meanwhile, the Department of Livestock Services compiled the latest damage assessment from the floods in the south-eastern region on 7 October. According to the report, 19 districts have been affected, including the south-eastern region and the Mymensingh division with several, including Sherpur, currently experiencing floods. In these 19 districts, 5,919 farms have been impacted.
World Egg Day
Meanwhile, World Egg Day will be observed by government and private organisations in the country today (11 October) with the slogan, "Nutrition in eggs, strength in eggs, eggs for disease-free living." The day has been observed every year on the second Friday in October.
Call to save small producers
According to data from the Bangladesh Poultry Industries Central Council, corporate farms supply 13.96% of the total production in the country, while the remainder come from small-scale farmers. The calculation was based on the daily production figure of 4.5 crore eggs before the floods.
Suman Howlader, president of the Bangladesh Poultry Association, told TBS that thousands of farms have completely shut down due to the floods.
"Additionally, many farmers have sold their chickens at low prices quickly due to stagnant water, and some have lost their capital due to the death of chickens. All of these factors have contributed to the shortfall in egg production," he said.
Suman Howlader said that while the temporary permission for imports is helpful, it is not a permanent solution.
The small farmers, who have been withdrawing from production due to pressure from corporate farms, need to be brought back into the fold, he said. "For this, government oversight on the prices of chicks and feed has become essential. Ultimately, there is no alternative but to increase our production."
The instability in the egg market has disproportionately affected low-income people. In Dhaka, all vegetables except for potatoes (priced at Tk60-65 per kg) are now selling anywhere between Tk80 and Tk120. This situation has made it difficult for low-income consumers to rely on eggs, which have also seen a significant price increase.
