EGG-TRAVAGANT PRICES SCRAMBLED HOUSEHOLD BUDGETS

A public service employee who earns 7,500 Br a month recently found himself walking away empty-handed from a street vendor near Anbessa Gibi Park (Russia St.) in Addis Abeba. Only weeks ago, he could buy 20 to 30 eggs a week at under 10 Br each, but the price has now soared to as high as 21 Br, putting eggs out of reach for his family of five. He used to rely on eggs for protein after rising beef prices squeezed them out of his household budget; even subsidised egg sandwiches at his workplace cafeteria have jumped beyond what he could afford. The sudden surge in egg prices has rumbled through local bakeries, restaurants, and small shops. A wholesaler near Addis Abeba University’s Yared School of Music recalled a time when a broader range of customers visited daily. Now, eggs cost around 16.50 Br wholesale, with retail prices skyrocketing well above 18 Br. Stalwart buyers tend to be wealthier households or cafes, leaving most low-income customers to merely inquire and leave in frustration.

The Ministry of Agriculture reported egg production rising from 3.2 billion to 5.7 billion in two years, with projections to reach 9.1 billion next year. Chicken meat output has followed a similar path, climbing from 90,000tns to 208,000tns during the same period. Farmers initially saw egg prices drop to around six Birr last year, triggering a glut in the market. But, the subsequent exodus of small-scale producers from the business has now reversed the trend. Commercial poultry farms found themselves caught in a punishing cycle. Egg prices tumbled so low last year — occasionally down to four Birr — that many small operators could not cover a production cost of up to eight Birr. As businesses folded, large farms were forced to dispose of unsold eggs or switch to broiler chickens. With fewer layer hens in circulation, egg prices have soared again, attracting new entrants who hope to cash in on higher profit margins.

At the heart of these fluctuations lies the soaring cost of feed, which can account for up to 80pc of production expenses. Corn and soybeans, the main ingredients, are increasingly difficult to source due to regional conflicts and transport disruptions, while imported premixes and vaccines face added burdens from currency depreciation and taxation changes. Even large-scale producers, who can weather short-term losses, struggle when monthly feed bills balloon and small-scale farmers exit the market en masse. Although federal government officials prioritise domestic supply by limiting poultry exports, industry experts warn that restricting market outlets only worsens these boom-and-bust cycles. Many argue that fewer and larger farms could achieve stable production levels, but most of the eggs still come from smaller outfits that lack the economies of scale to survive prolonged price swings. For now, the market’s turmoil has turned once-humble eggs into a near-luxury, with consumers left searching for protein alternatives

Crédito: Link de origem