Egg prices continue to rise after suspension of third Malaysian farm

KELLY NG Today Online 21 Oct 14;

The prices of fresh eggs here have continued to rise as the supply shortfall widens, after another farm in Malaysia was suspended last month — the third in six months — from exporting eggs to Singapore.

This is so despite the three suspended farms accounting for less than 8 per cent of Singapore’s total supply of 1.68 billion eggs last year. In the past three weeks alone, a few supermarket chains have raised the prices of eggs several times.

School canteen vendor Margaret Tan, 60, who usually buys eggs from Sheng Siong, said a box of 30 eggs now sets her back S$5.95, up from S$5.60 last week and S$4.30 last month.

At NTUC FairPrice stores, fresh eggs now cost between S$1.95 and S$5.70 for a pack, up from between S$1.90 and S$5.55 at the end of last month.

A FairPrice spokesperson said prices of eggs had increased by about 12 per cent over the past six-and-a-half months for “various reasons such as reductions in supply and economic conditions”.

Egg prices at Giant have also increased by about 4 to 7 per cent in the past three to four months, said a Dairy Farm Group spokesperson.

Last month, the Agri-Food & Veterinary Authority (AVA) suspended Charoen Pokphand Jaya farm after its eggs had been found to contain Salmonella Enteritidis — a bacterium that causes food poisoning. The two other farms, Chong Ne Nam and Teo Seng Farm 8, were suspended in March and July, respectively.

Singapore imported about three-quarters of its eggs from Malaysia last year, with the rest produced locally. There are currently 20 Malaysian chicken layer farms approved by the AVA.

Mr Tan Lau Huah, chairman of the Eggs Import/Export Trading Association, said prices first took flight around August, after the second farm was suspended, and had risen thrice since.

Wholesale prices are now at a record high of almost S$2.40 per dozen.

“We face higher costs from our Malaysian suppliers and demand has risen because of festivities this month, so we have no choice but to raise prices,” he said.

Mr Tan expects prices to remain unchanged for the next two weeks as demand is likely to subside only after Deepavali. KELLY NG

Suspension of Malaysian farms will keep egg prices high: Experts
Lester Hio The Straits Times AsiaOne 24 Oct 14;

Egg prices are expected to remain high after three farms in Malaysia were suspended over a Salmonella scare.

Supermarkets and wholesalers here have put up prices due to a supply shortfall caused by the suspensions earlier this year.

Industry experts say they are unlikely to fall for the time being, as Malaysia remains the main source of eggs for Singapore - which has no other affordable alternative sources.

The Agri-Food and Veterinary Authority suspended the third egg-laying farm in Malaysia last month.

Eggs from the Charoen Pokphand Jaya farm in Johor were found to contain Salmonella enteritidis, a bacterium that causes food poisoning.

Two other farms - Chong Ne Nam and Teo Seng Farm 8 - were suspended in March and July respectively for the same reason.

Fresh eggs at FairPrice now cost $1.95 for a pack of 10 and $5.75 for a pack of 30, up from $1.65 and $4.70 respectively at the start of August when the price hikes first started.

A FairPrice spokesman added that prices rose about 12 per cent on average over the last six months.

At Giant, a pack of 30 eggs costs $5.70.

A spokesman for Dairy Farm Group, which owns Giant, said its prices have increased by 4 to 7 per cent over the past four months.

Mr Tan Lau Huah, chairman of the Eggs Import/Export Trading Association, said prices have reached a 10-year high, with wholesale prices peaking at $2.40 for a dozen.

"The last time prices rose so much was during the Sars period in 2003," he said.

Housewife Maria Tan, 47, who buys about 30 eggs a month, said: "Everything costs more these days, so I have no choice but to pay a dollar or two more a month for eggs."

The suspensions have reduced the daily import supply by about 30,000 eggs, according to Mr Tan.

Singapore imports about four million eggs a day from Malaysia.

Mr Tan said that the association has tried to source eggs from other countries, such as Australia, in the past to diversify supply, but found that it was not feasible due to the high costs.

"Eggs from Australia cost more," said Mr Tan.

"A box of 30 will cost the customer more than $10. That's just too expensive."