AGRICULTURAL NEWS - The past year was a very challenging year for egg producers, according to Senior Executive: SA Poultry, Dr Charlotte Nkuna.
Farmers saw feed price increases of a minimum of R1 000 per tonne between January and August 2016 due to the drought. At the same time, between January and April 2016, egg prices dropped substantially because of excess eggs on the market.
"It was very difficult for the farmers to cope with the high feed prices and the low market prices for eggs. They were unable to recover any of the losses suffered because of the increases in the price of feed," she said.
This hardship resulted in the exit of many of the small-scale farmers, those with a capacity of between 5 000 and 40 000 hens. Some of the farmers depleted their flocks early, which changed the average depletion age from 74,8 weeks in 2015 to 71,8 weeks in 2016. The above factors have resulted in a shortage of eggs on the market and due to that, consumers can expect an increase in egg prices.
The indications are that prices are likely to increase on average by about 7 - 8 per cent. This scenario is likely to persist while farmers attempt to increase their production to meet the market demand.
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