• Producers demand no further reductions

Sri Lanka’s egg producers issued an ultimatum to the Government last week, demanding no further reductions in prices. 

The price of eggs has decreased from Rs. 46 to Rs. 40, but this reduction has aggravated the financial strain on farmers struggling with soaring production costs, according to the All-Island Egg Producers’ Association (AIEPA).

According to the association, wholesale eggs are currently priced at Rs. 40 nationwide, while consumers can buy them for under Rs. 45.

In Colombo, small eggs are available at Rs. 38.

The AIEPA charged that the farming community was facing severe financial pressure due to the increasing costs of feed and essential resources.

Speaking to The Sunday Morning, AIEPA President Sarath Mandapola said: “Corn, which was initially available at Rs. 100-110, is now being sold to farmers for Rs. 190.”

According to him, egg production costs have surged by 70% over the past month.

“The cost of rice, another critical feed ingredient, has risen from Rs. 110 to Rs. 160 per kg. It’s also about supply and demand. While prices may adjust in the future, the current conditions are unsustainable for many farmers,” Mandapola said.

He went on to explain that producing eggs required feeding hens for 4.5 months, costing around Rs. 2.8 million to yield 300 eggs per hen.

At a sale price of Rs. 36 per egg, farmers would need Rs. 34 per egg to cover costs.

In addition, as explained by the association, the situation has been further complicated by the soaring price of baby chickens at Government-led National Livestock Development Board (NLDB) farms, which has increased from Rs. 200 to Rs. 800.

He stressed that this sharp rise in costs was pushing farmers to the brink of financial instability.

“If the prices of baby chickens and corn are not reduced, farmers will struggle to sustain operations. We are urging that baby chickens be priced at Rs. 200 and corn at Rs. 110,” he said while urging the Government to take immediate steps to address the issues faced by the farmers.

The association also criticised the price disparity between Government-run farms and private producers. 

“Government-run farms like the NLDB farm in Marawila are selling eggs at Rs. 45-46. If private farmers are expected to lower prices, they will face severe losses and might be forced to sell their flocks,” Mandapola warned.

He pointed out that 80% of feed ingredients were imported, making the industry vulnerable to external price fluctuations. 

“With the current price hikes, it is becoming increasingly difficult to maintain profitability. Raising 1,000 hens now costs around Rs. 3 million. We need solutions to lower these costs urgently,” he concluded.

In responding to Minister of Trade Nalin Fernando’s constant calls for reducing egg prices, the association stressed that it was ready to discuss the issues in a meeting representing all relevant stakeholders.

Minister Fernando previously stated that if traders and producers of essential items continued to fail to manage prices, the Government may be forced to implement price controls.

“We prefer not to resort to controlled prices, but we may have no choice. I have scheduled a meeting with all trade associations next week to clearly convey this message,” the Minister said, addressing a press briefing.