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Purchasing Power for Egg Producers Decreases

by 5m Editor
4 December 2013, at 5:34am

BRAZIL - Due to a decline in product prices and increase in corn price, the purchasing power for egg producers has decreased.

According to Brazil's Center for Advanced Studies on Applied Economics (CEPEA), majority of egg producers are unable to cover production costs and many of them are already operating at a loss.

Last month, both brown and white egg prices dropped by ten per cent in the Greater São Paulo region.

On Friday, 29 November, the average price for a box containing 30 dozen white eggs and brown eggs is R$47.41 and R$50.30 respectively.

Similarly, the average price of corn marketed in Campinas, São Paulo, has risen seven per cent.

According to CEPEA's researchers, the pressure on egg prices continues as a result of high demand.

In addition to the significant volume of small and medium sized eggs produced, the supply of larger eggs is also gradually increasing owing to production of new hens.

CEPEA reports that corn and soybean exports are moving at a strong pace and the appreciation of the dollar against real factors are mainly determining the prices of these commodities.