Business & Money | Wednesday 11 February, 2015 1:04 am |

Egg prices in the Kingdom are soaring in recent times, with poultry producers claiming this is part of the normal supply and demand cycle in the country.
Local media monitored variations in retail and wholesale prices for eggs, with retail prices reaching SR18, and wholesale standing at SR16, over two riyals higher than previous weeks.

According to local media research, the price of an egg carton at farms like Al-Gharbiyah and Teibah, has hiked to SR19, while only a few weeks ago it was SR 17. Al-Khuzama farms registered an increase of one riyal, since their egg carton now stands at SR16 in comparison with their previous price tag of SR 15, while Asayel and Kadaman increased each carton from SR16 to SR18.

Abdullah Al-Qadi, president of the poultry producers’ association, justified this increase in prices claiming they are subjected to supply and demand, in addition to any fluctuation in the market. However, Al-Qadi explained that Saudi prices are competitive when compared to the cost of an egg carton in the Gulf and other countries. Many poultry farms suffered losses as a result of low prices in different months of the year, with the price of a 30-egg tray dropping to SR10.

During the winter prices increased to SR 14 and SR 16 because of the increased demand and the changing production cycle. According to consumer claims, prices of foodstuffs in general are the responsibility of relevant authorities, who should monitor producers and distributors. “The market needs to modify the distribution process and adjust to an electronic monitoring system used in other countries, that connects producers and distributors without the need to use brokers that tamper with the prices,” Al-Qadi said.
According to Al-Qadi, everyone, especially the Ministry of Labor, knows that egg production in the Kingdom covers the needs of the Saudi market, with surveys and studies carried out by the Ministry of Agriculture confirming that the Kingdom’s egg production covers 100 percent of the market needs.

As a sign of the industry’s good health in the country the former Minister of Agriculture, Abdullah Balghanim, stated that local production of eggs has a surplus of over 20 percent. Despite the ministry’s optimistic claims, Al-Qadi pointed out that the poultry market is mismanaged and unorganized, which leads to higher costs, scarce labor and lack of visas for drivers and distributors. The entry of extra producers in a random manner leads to a surplus of eggs in the market because of the decreased prices, which in turn causes small farmers to accumulate great losses, with many of them withdrawing from the markets.