The early June figures show a fall in egg prices and producer prices for pigs for slaughter and chickens for slaughter.Continue reading
Under the current circumstances, table egg production cannot be sustained, as producer and packaging prices on the domestic market extremely low, the Association of Hungarian Egg Hybrid Breeders and Egg Producers points out. Farmers are well aware that the summer period’s fall in demand and sales has an impact on egg prices, but the organization believes that the recent adverse price changes are now threatening the sustainability of egg production and that price increases are therefore essential, reports Világgazdaság.
Although inflationary pressures on the inputs side of production in the egg sector may be easing, there is no prospect of a reduction in production costs, says the association in a statement. They also stress that on the revenue side, egg prices have fallen significantly in recent times. Therefore,
the organization considers that price increases will be necessary on the egg market from autumn.
This may also be justified by the need for farmers to buy or tie up a large proportion of their fodder requirements in the coming period, the purchase and financing costs of which may rise significantly as a result of the increase in crop prices due to extreme weather.
According to the association, the situation of egg producers is worsened by the fact that the government, after repeated requests, has recently repealed regulations that directly regulated the behavior of traders in relation to supply and pricing, but consumer egg prices have not increased.
The result is that, as producer prices fall, it is in fact the farmers who pay the price for the traders’ profits.
“The experience of recent years has shown that significant price volatility is clearly damaging to the domestic egg sector,” the association underlines. Therefore, it would be in the interests of all operators in the sector if long-term agreements were reached between producers and traders that would create price stability rather than fluctuations and guarantee the equilibrium of domestic production on the egg market.
Via Világgazdaság; Featured image via Pexels
