Manufacturer explains why egg prices have sky-rocketed, in 2020
Nowadays, a box of eggs is sold in grocery stores for around TL 25-35. This price is observed to have gone up extremely high. The question is “What has happened in the meantime to cause egg prices to incur such major increase”. In reply to above question a manufacturer has come up with following explanation:
“The manufacturer in the sector sold their eggs at a loss for 18 months. They had to cope with many difficulties. At the moment the situation of manufacturers is very tight. The producer is trying to sell his daily eggs and buy feed so that he can feed his chickens. The producers sold their eggs at a loss for 18 months. For example, in June we sold an egg that we produced for 380 kurus for 180 kurus, only. Even if the manufacturers make a 10 percent profit right now, they still can’t stand it. The number of producers which was 100, 10 months ago, has fallen to 27. In parallel, the chicken presence in Konya has decreased from 17 million to 10 million now, and 7 million chickens have been cut. If this continues, we will not have chickens to produce eggs. At the moment, the coops of many manufacturers are empty. For instance, I sold 6 flats and 2 fields to bear. The apartments and fields I sold were inherited from my mother and father.
Are retailers responsible for price increases?
“Currently, the producer produces an egg for 56 kurus and sells it for 58 to 60 kurus. I think that the biggest reason for the increase in egg prices is grocery stores. While the manufacturer sells a parcel of eggs for TL 18-20 , figures circulated in grocery stores for TL 30-34 for a few days. They can’t control the grocery stores right now. Everyone is trying to put the blame on the manufacturer. Both the Ministry of Economy and the Ministry of Agriculture are calling to ask about the price increases and asking why the rise is happening. We are sending our bills showing that concerned increase does not have to do with us.”
When we look at the picture starting beginning of the year we can see that egg prices have gone up 100 per cent in a year. In January, egg prices were 30 kurus at manufacturers, 50 to 60 kurus retailers. Curently, manufacturer price is 70 kurus while retailers sell fro 1 TL and over. Thus, the price of a kilogram of eggs has increased to TL 17, leaving chicken prices, behind.
