Government takes hard-boiled stance on egg price increases

With local egg prices set to increase on Monday, government officials have said there is nothing much they can do to cushion the impact on consumers

The increase comes as global prices in corn and soybeans as well as demand increases for grains in China led local suppliers to raise prices for livestock feed by almost ten per cent.

Speaking with Newsday on Friday at the product launch of Red Gold Moruga hill rice, Agriculture Minister Clarence Rambharat said international markets trends were out of the government’s hands.

“At this stage there is nothing that the government plans to do. But we have a responsibility to protect the interest of the consumers and also see what could be done if we need to intervene.

“We know that there will be price increases in some of the inputs, and I know some of the local feed manufacturers and importers are trying to absorb some of the increased cost, but they would not be able to absorb all of it. Some of the retailers are already saying there will be price increases.”

He added that the situation continued to be monitored by his ministry and the Ministry of Trade and said there was no need for a meeting with the farmers yet.

Trade Minister Paula Gopee-Scoon, who was also at the launch, said state-owned National Flour Mills (NFM) has not raised its prices but was also looking at international market prices.

She said, “So far NFM has been absorbing some of the price increases and the shocks, and they are trying to go as far as they can, and we hope there is some normalcy by the end of March. This is a global issue, as there is a great demand by China, who has started ramping up economic activity and also because of production issues in the US and South America.”

Gopee-Scoon added that if there must be intervention it would have to be done through the Agriculture Ministry.

Farmers were upset on Friday afternoon over the developing situation. TT Table Egg Producers vice president Dennis Ramsingh said they were left with no choice and will begin to roll out the new prices on Monday.

Poultry farmers were also up to Friday afternoon deliberating on their next move, but owner of Master Duck farm in Freeport Amar Samlal hinted that the new prices will come within the next two weeks.

He told Newsday his business was severely affected by the covid19 lockdown, in which he had to lay off half of his staff, and ran into significant losses.

“The increase in grain prices will mean an automatic increase in our prices. Because of covid19 we are negatively impacted. Sales are lower, as ducks are not a part of someone’s everyday diet. Now we may have to cut staff again and increase prices to survive.”

He said feed prices had increased by $30. “So what was about $180 per bag we now have to pay $210. We also have to be careful because we need to remain competitive. This has put a strain on us..”

Managing director of feed distributor Mastermix Hamant Mahabir earlier this week said not much could be done and the prices will have to be increased owing to international market structure.