Advertise with fastmoving.co.za
 
 

The price of eggs is likely to increase between 15% and 20% in the next few months.
The price of eggs is likely to increase between 15% and 20% in the next few months.

Egg price expected to rise 20%

ECONOMIC NEWS

By Jeandré du Preez - Dec 8th 2017, 10:41

South African consumers should brace themselves for a steep hike in the price of eggs, according to Paul Makube, senior agricultural economist at FNB Business.  

The price of eggs is likely to increase between 15% and 20% in the next few months, on the back of the widespread avian influenza outbreaks during the course of 2017, he said.

“The increase in the egg price is subject to supply and demand dynamics, with the Influenza outbreak having a major effect on the recent spike. The impact on prices has been more pronounced in the Western Cape, due to the culling of layer hens and the subsequent supply shortages in the region,” Makube said.

In addition, the cost of distributing eggs was also likely to increase following the recent fuel hike.

“The downstream impact is that retailers will be selling eggs at higher prices this festive season, therefore consumers will pay more for a tray of eggs,” Makube explained.

This upward trend is likely to continue in the short to medium term as supply shortages are likely to last up to a year, he added.

However, Makube said that the upside was that the price increase would help producers to recoup losses as they were still paying off debt incurred during the recent drought.

He added that it would also place them in a better position to rebuild poultry numbers and increase production.

Reduced feed costs, due to the lower maize price, will also continue to contribute to the profitability of the sector. The maize price was expected to remain low, supported by a favourable weather outlook for the coming season.
© 2017 Farmer's Weekly Magazine 

Related News

SA expected to sow fewer maize hectares than in previous seasons
26/11/2019 - 10:06
South African farmers are expected to sow 2.8% fewer hectares of the food staple maize next season than forecast in October after the planting season was delayed by rains, a Reuters survey of analysts showed.

Global wine output falls this year after bumper 2018
01/11/2019 - 11:17
Global wine production fell about 10% this year, with major producers France, Italy, and Spain hit the most by unfavourable weather conditions, according to a leading international body.

President Cyril Ramaphosa launches SA's first smartphone plant
21/10/2019 - 09:52
President Cyril Ramaphosa recently opened South Africa's first smartphone production plant at the Dube TradePort in Durban.

SA economy at risk of third-quarter contraction
11/10/2019 - 09:54
Dismal mining and manufacturing figures for August have raised the prospect of a third-quarter economic contraction.

Rising feed costs clip Astral’s wings
11/10/2019 - 09:06
Astral Foods, SA’s largest poultry producer, said that rising feed costs and disappointing consumer spending patterns would crop its earnings in the year to end June.