Eggs are becoming more expensive to produce, says Egg Organisation

Eskom tariff increase of 18.5% kicked in, adding more pressure on the egg producers.

Eskom tariff increase of 18.5% kicked in, adding more pressure on the egg producers.

Published Apr 24, 2023

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Johannesburg - The Egg Organisation's general manager, Dr Abongile Balarane, says that although eggs remain one of the most affordable animal protein sources, it is becoming increasingly expensive for farmers to produce this highly versatile and nutritious protein source.

Baralane says the Eskom tariff increase of 18.5% kicked in, adding more pressure on the egg producers.

‘’It is estimated that the variable costs to produce an egg, which include electricity, fuels, and feed, have increased from previously circa 70% and are now closer to 80%. Recently, these soaring costs, combined with Eskom’s erratic electricity supply, which causes multiple daily electricity blackouts and severely impacts egg production and packing, have forced many producers (particularly small producers) and some pack stations to exit the industry," he says.

The South African Poultry Association stats have, according to Baralane, confirmed that the entire value chain is also affected at the primary egg production level, with the day-old pullets hatched expected to decline possibly by 35%, with the point of lays Hens (PoL) replacement also expected to be down by 11%.

‘’During these darkest of days, I am confident that our resilient egg producers will continue to offer South Africans their much-loved animal protein source,’’ said Baralane.

Meanwhile, according to the Managing Director of Hume International, Fred Hume, South Africa urgently needs to agree on a heat treatment protocol for mechanically de-boned meat (MDM) in case of a bird flu outbreak, such as the protocol currently in place for pork sourced from approved markets abroad.

‘’Imported chicken provides a crucial complement to local production for satisfying local demand. For example, Hume International alone imported roughly 60 000 metric tonnes of poultry last year, while South Africa, as a whole, imported three times as much poultry as it exported in terms of nominal value,’’ he says.

Hume said that as a result of the global bird flu outbreak, there is a significant risk to the country’s food security, especially given the dependence of many households on chicken as an affordable protein.

‘’The outbreak has already reached countries such as Argentina, which represents real cause for alarm given that the country is neighbours with Brazil, the biggest source of imported chicken in South Africa,’’ he said.

The Star

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