DOT Desk: Recently egg prices have risen again. Some people are making allegations that Kazi Farms is involved in a syndicate which manipulates prices. These allegations are completely false. The egg market is competitive, and prices are determined by demand and supply. When supply falls, the retail egg price will go up, even if Kazi Farms does not increase our selling price, because we produce only 5% of the total eggs sold in Bangladesh,reports Dhaka Tribune.
On August 2, Kazi Farms sold eggs to traders at Tk11.06 each from our Ashulia wholesales centre. The Ashulia wholesale egg price increased to Tk11.30 on August 6 and 7, and then to Tk11.40 on August 8. We have been selling at Tk11.40 since.
The price of eggs at retail shops is higher, but we are not responsible for the retail price. Traders distribute eggs to retailers. We don’t sell unbranded eggs directly to retailers as we don’t have enough staff to manage sales to thousands of small shops. Anyone who thinks that Kazi Farms controls the retail price is mistaken.The market price of eggs goes up whenever the supply is reduced for any reason, and there are many possible reasons.
First, in hot weather, hens eat less feed and lay fewer eggs. So it is not unusual for egg production to fall in summer, and for egg prices to go up. Second, farmers may have difficulty transporting eggs to market during rainy weather. Third, the main raw material used in poultry feed is maize. Since April, the local maize price has risen from Tk26/kg to Tk31.50/kg today, an increase of 21%. When the feed prices go up, farmers will produce at a higher cost, and must either sell at a higher price, or shut down.