Electricity has everything to do with the price of eggs
The entire value chain is also affected at the primary egg production level.
Eggs are the latest food source to suffer under the current economic conditions, exacerbated by load-shedding, according to the SA Poultry Association (SAPA).
Dr Abongile Balarane, SAPA general manager: Egg Organisation, said egg producers are facing the “darkest of days”.
“Although eggs remain one of the most affordable animal protein sources, it is becoming increasingly more expensive for farmers to produce this highly versatile and nutritious protein source,” he said.
This because the Eskom tariff increase of 18.5% kicked in on April 1, adding more pressure to egg producers.
According to SAPA, it is estimated that the variable costs to produce an egg, which includes electricity, fuels and feed, has increased from previously circa 70% and is now closer to 80%.
“Recently, these soaring costs, combined with Eskom’s erratic electricity supply causing multiple daily electricity blackouts, which severely negatively impacts egg production and packing, have forced many producers (particularly small producers) and some pack stations to exit the industry,” said Balarane.
“The SAPA stats confirm that the entire value chain is also affected at the primary egg production level, with the day-old pullets hatched expected to decline possibly by 35%, with the point of lays Hens (PoL) replacement also expected to be down by 11%.
“During these darkest of days, I am confident that our resilient egg producers will continue to offer South Africans their much-loved animal protein source.”
