In 2011, Latvia produced 665 millions eggs, which is 6.9% less than during the previous year (715 millions), the country's statistical agency recently announced.
Each of the hens layed 264 eggs, which is 3.6% less than in 2010. In 2011 the average sales price for eggs decreased by 7.7% - from 4.28 lats (US$ 8.04) to 3.95 lats (US$ 7.42) per 100 eggs. According to the local producers if the price of eggs does not increase in 2012, the decline will continue.
Gennady Yershov, board member of the large company for the production of eggs, Madona, claims that the 2011 price for eggs was significantly lower than in 2010. He estimated that the retail price of eggs does not meet the production costs. “A significant share of the costs associated with the production of eggs accounts for the purchase of feed, which are quite expensive because of rising grain prices. Although the price of grain has decreased compared to the end of the summer, it still is quite high," says Yershov.
“Prices for eggs should grow by 10%, so the producers stop receiving losses," he added whilst also confirming that because of the cheapness of eggs in the local market his company didn’t achieve any growth in 2011, and was forced to cancel the planned investment project.
Chairman of the Board of Latvia's largest producer of eggs, Balticovo, Valdis Grimze also acknowledges that the low price of products complicates the situation of the industry. "Feed is currently expensive, while the price of production is low," said Grimze, noting that egg producers will be able to work without a loss if the price of eggs will increase by 5-10%.
Source: Vladislav Vorotnikov