ST. JOHN’S, Antigua (CMC) – Less than a week after Prime Minister Gaston Browne called on the Antigua and Barbuda Layer Farmers Association (ABLFA) to reverse its decision to increase the price of eggs, his administration Friday announced that the egg market will be liberalised.
“In the absence of an agreement; our government will be forced to discontinue the protections and support for these uncooperative poultry farmers,” Prime Minister Browne said in a statement posted on his Facebook page.
The association had earlier announced an increase in the cost of both white and brown eggs, saying that as of last Monday, the prices would move from EC$12.00 (One EC dollar=US$0.37 cents) per dozen to EC$14.00, or EC$420.00 for each case, up from EC$360.00.
It says various factors, including heat stress and rising operational costs, have contributed to the decision to increase egg prices.
In his statement, Browne said that the two-dollar price increase would increase the wholesale price of eggs by 40 percent in two years.
“The retail price of eggs will increase to EC$18-19 per dozen, putting one of the most significant sources of protein beyond the affordability of the poor and vulnerable. If we do not stop this developing egg cartel that is unjustifiably increasing the costs of eggs, we will be faced with other frivolous increases shortly.
“The egg market will be opened. The forty percent duties and taxes on imported eggs and import permits will be eliminated and no further support or subsidies will be given to these poultry farmers. Our government subsidies costs to lower prices, not to inflate profits,” Browne said.
He said that the subsidies were designed to drive down costs to keep egg prices affordable for all, especially the poor and vulnerable.
“The poultry industry will be regulated by a Poultry Development Board that will be responsible for setting egg prices and monitoring the sanitary and phytosanitary conditions of poultry farms, to reduce the escalating incidences of salmonella and other microbial diseases.
“Farms that do not satisfy these conditions will be closed in protection of consumers. We have been advised that under EC$19.00 per dozen,” Browne wrote on his Facebook page.
Meanwhile, the ABLFA general secretary, Valerie Edwards, is denying claims of an agreement with the government to prevent an egg price increase, saying discussions were still pending.
A statement issued following the weekly Cabinet meeting noted that the government had invited representatives of the ABLFA to address the issue of their intended increase in the wholesale cost of eggs.
The statement said that the Cabinet had pointed out that the “climate conditions were the same in neighbouring islands and the cost of feed did not significantly increase there; further, the cost of a dozen eggs was below the amount which customers in Antigua and Barbuda now pay”.
The statement said that following intense discussion, it was agreed that a study will be undertaken by an accounting firm within the next 60 days to determine the cost that farmers incur to produce one dozen eggs, noting “that amount was not known by the representatives of the Poultry Association.
“The Cabinet agreed to the establishment of a Poultry Board made up of five (5) to seven (7) members, drawn from the Ministry of Agriculture, the Poultry Association, an accountant, the Chief Veterinary Officer, and others; they will determine the reasonable cost of poultry products to consumers and not have that decision made by those who produce eggs and grow poultry for meat.
“Despite this, the Cabinet reported averting a price hike after negotiations. Farmers requested a two-dollar wholesale increase due to heat and rising feed costs, but Cabinet members questioned the necessity, citing stable conditions in neighboring islands. A study will be conducted to determine egg production costs, and a Poultry Board will be formed to regulate prices. The Cabinet also warned against creating an “egg cartel” that could exploit consumers,” the statement said.