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News and analysis on the global poultry
and animal feed industries.
on January 12, 2010

Thailand’s egg prices fall below production cost

Egg group blames large-scale producers

Thailand’s commerce ministry estimates a daily national oversupply of 1 million to 2 million eggs, leading to falling wholesale prices that are lower than the average production cost, according to The Nation, a Thai newspaper. Production totaled 9.9 billion eggs in 2009, fewer than 1% of which were exported, and is expected to rise even higher this year to 10.2 billion.

Currently, the farm gate price for eggs is ฿2, while production costs average ฿2.30. The retail price averaged ฿2.71 in 2009, according to the newspaper.

Small-scale farmers, who are responsible for about 30% of production but make of 90% of egg producers, say competition from large-scale producers and high feed costs could destroy their businesses. “Large enterprises can sell their eggs below the market price as they have lower production costs, while small farmers face higher costs of production but low selling prices in the market,” said Manoch Chootubtim, president of the Hen-Egg Farmers Association.

Porntiva Nakasai, Thailand’s commerce minister, said her ministry is calling on government agencies to encourage egg consumption and will be meeting with large egg feed producers to discuss a solution to the price drop.

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