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Business
December 8, 2009

Egg farmers crack under economic pressure

RUNAWAY BAY, St Ann – EGG farmers have been complaining, for some time, about the increased cost of production and their inability to pass on the cost to consumers. The high cost associated with producing good quality eggs, to supply the local market, has forced at least ten egg farmers, within the last year, out of operation.

Very high input costs have also caused many farmers to significantly reduce their operation and they have complained that consumers are unwilling to pay more for the product.

President of the Jamaica Egg Farmers Association, Mark Campbell said egg farmers are facing difficult times and explained that this is primarily because of the increased cost in production and farmers being unable to pass on prices to consumers.

Campbell said if farmers are to continue producing they will have to increase the price of eggs particularly if there are no reductions in production cost. Within the last year, Campbell said, production cost in some instances, have doubled and that operators have to stand the full charge.

“It was very tough, not an ordinary tough year, the cost of feed went up significantly and we were not able to make the adjustments… the farmers, many of them fell off, many did not continue in the business and many have reduced their production,” Campbell told the Business Observer at the association’s 11th annual general meeting at Sun Flower Resort in St Ann, last Wednesday.

“In the new year, I think if there is not a general upward revision of prices, we are going to be severely challenged to keep producing eggs here in Jamaica,” Campbell said. He explained that if consumers want to continue using locally produced eggs they will have to pay more.

Meanwhile, Norman Williams, of Jamaica Egg Services said in many instances farmers had to sell their eggs below the cost of production and that this negatively impacted them.

“What has happened this year is that the production level did not really go up compared to other years, normally we produced about 11 million dozen eggs per year and I don’t think that this year was any different,” Williams explained.

He said this was because the spending power of consumers was significantly reduced and farmers could not recover their input cost by increasing their prices. He said the industry has embarked on an advertising and education campaign to sensitise farmers about how they can produce better quality eggs and consumers about the importance of the product in their meals.

“We are hoping that as the benefits of adverting take hold, we will move the current one egg per person per week to two eggs per person per week and when that is done, we would have started to grow the industry,” he added.

Campbell said as the yuletide season approaches the association is hoping for a boost in sale. He said although many farmers have downsized their operation the local industry can fully meet the demand of any increase in the product during this season and that there is no need for any importation.

But, he said, the association is seeking to have sustained sale all year round. He anticipates that a marketing campaign and an agreement the association has brokered with the education ministry to use eggs in the school feeding programme will help to boost the industry.

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