Egg price hike follows cull

Egg prices are surging with no sign of a decline on the horizon as farmers battle with an avian flu outbreak which has caused the culling of millions of egg-laying hens.

About 4.7 million egg-laying hens have been culled since the outbreak in June, affecting 13 egg farms that are mostly in the Western Cape.

The avian flu outbreak has also led to more than 1 000 job losses and reduced SA’s egg production by 3.9 million eggs a day, according to the SA Poulty Association.

Eggs, usually an affordable source of protein, are scarce on shop shelves and more costly.

The average price of a tray of 18 eggs was 16.9% more in November 2017 compared to the same time last year, Statistics SA’s data indicated.

In rand terms, SA’s average egg prices (carton of 18) rose from R36.49 to R42.65 over the same period. Inflation for eggs in October was 4.8% year-on-year.

Eggs are most expensive in the Western Cape, with the average price for a carton of 18 at R46.85.

SA’s average egg production for 2017 is expected to be the lowest in five years at 379 000 cases per week, data from the SA Poultry Association showed.

Some retailers in the Western Cape have been forced to buy eggs from inland regions, said Dr Charlotte Nkuna, the interim CEO of the SA Poultry Association.

Nkuna said the spread of the avian flu virus, which originated from the droppings of waterfowl carrying the virus, is under control as temperatures continue to rise, which helps keep the virus in check.

But this doesn’t necessarily mean that the price of eggs will ease any time soon.

Paul Makube, senior agricultural economist at FNB Business, expects egg prices to increase between 15% and 20% from December 2017 to June 2018.

“The increase in egg prices is subject to demand and supply dynamics,” Makube said.

SA’s big retailers are confident they can meet the demand for eggs though. Richard Stockley, head of innovation at Woolworths Food, said eggs are fully available in their stores. However, Woolworths had to make a “slight price adjustment” due to the repercussions of the avian flu outbreak.

Pick n Pay also adjusted egg prices and has not had promotional specials to stabilise demand.