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News and analysis on the global poultry
and animal feed industries.
on August 31, 2009

Bangladesh imports eggs from India to stabilize prices

Egg farmers claim decision is a ‘hazard to public health.’

Poultry farms in Bangladesh are facing competition from eggs imported from India. Following outbreaks of highly pathogenic avian influenza in the northwest areas of the nation, egg prices soared as unaffected producers took advantage of the disparity between supply and demand and ignored government requests for restraint. The industry is now faced with a large influx of eggs which will stabilize and then depress the market.

The Bangladesh organization for poultry farmers has claimed Indian imports will be a "hazard to public health." This is fallacious since avian influenza is not transmitted through eggs although there is a small probability that the virus may be carried on packing material.

If eggs are sourced from flocks that are certified free of avian influenza, there should be no risk. Bangladesh cannot, in any event, ban import of eggs from India since HPAI is virtually endemic to the importing nation.

The moral of this situation is that moderation in pricing under conditions of disruption in supply represents an advantageous strategy for both producers and consumers since government intervention is inevitable in any situation involving price gouging.  

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