OMG! See new price of crates of egg as poultry farmers reveal real reason for hike

• Poultry farmers have decided to increase the price of a crate of eggs, citing several economic factors
• The change across the country is blamed on the rising cost of maize and other economic factors for the change
• The farmers have called on the government to provide support to the industry so that they won't have to increase prices to survive

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The Poultry Association of Nigeria (PAN) has revealed another increase in egg prices, blaming low production and high feed costs.

Poultry farmers increase crate of egg price Photo credit: Yulia Naumenko
Source: Getty Images

Mojeed Iyiola, the PAN Lagos state Chairman, said that the rise egg prices is also due to scarcity.

The Nation reports that Iyiola cited the cost of maize, which is used to feed the chickens, as a major reason for the hike in fuel prices.

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He said:

The reason for the current hike in egg prices is the scarcity of eggs. Most farmers have sold off their old layers, and acquiring new stock is very expensive, with the cost of day-old chicks becoming unbearable."Farmers who can afford to buy day-old chicks are considered well-off. Additionally, many local farmers have shut down their farms due to the high cost of feed."Currently, a kilogram of maize costs as much as N850, compared to the N400 to N500 it sold for at the beginning of the year."The same applies to soya and groundnut cake, with prices increasing astronomically."

New prices for a crate of egg

A crate of eggs now sells between N3,800 and N4,000 from the farm gate and above N4,500 in retail shops and markets against N3,200 to N3,500 it was sold in May.

Despite the increase, Iyiola said it is not enough for farmers to recover their investments.

Iyiola added:

In fact, most farmers are operating at a loss. Even if a crate of eggs sells for N5,000, farmers are barely breaking even."We want to liaise with the food hub at Idi-Oro because our farmers are complaining that they can no longer afford to sell at a loss."We supply eggs at the farm gate for N3,800 per crate, and with the same logistics costs, we still sell at N3,800 at the hub, which means we are incurring losses."With all these logistics expenses, a crate of eggs should be sold for N4,500 at the food hub."

He warned that if the current situation continues unchecked, the sector may collapse entirely

Theresa Muyi, a poultry farmer in Alimosho, agreed with the PAN chairman, suggesting a further increase could be.

She said:

"Poultry feed prices have increased, and we now sell a crate of eggs from the farm gate for between N3,800 and N4,000. Retailers are selling them for N4,500 and above."“The price is still unstable because almost every week there is an increase in feed prices."

Six cheap foods now unaffordable to Nigerians

In related news, Legit.ng had reported that some formerly cheap food items are no longer affordable to average Nigerian homes.

According to a market survey undertaken by Legit.ng, food product prices have doubled in recent months.

The continuous rise in the costs of these staple foods, alongside other commodities, has reduced the buying capacity of Nigerians, as many find it challenging to meet their daily dietary needs.

Source: Legit.ng