Warnings of further spike in egg prices, as SA loses more than a quarter of supply

SA is losing more than 25% of its total egg production, with retailers and the SA Poultry Association (Sapa) warning South Africans to brace for an increase to already high prices.

The country has been hit by a third cycle of the Highly Pathogenic Avian Influenza (Avian Flu) with a new strain noticed in South Africa called H7N6. There are now two dominant strains of the virus. The first outbreak was reported in April in the Western Cape, and soon spread to other provinces.

The outbreak has led to a shortage of eggs, with several retailers alerting customers shelves could be empty soon.

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SAPA General Manager Dr Abongile Balarane told The Citizen the number of layer chickens lost to the flu would lead to a tight supply of eggs.

“We have now lost more than 25% of the national production size this week alone, there have been many cases reported in Gauteng,” Balarane said on Thursday.

A manager at a Frontline Hyper outlet in Johannesburg told The Citizen he was worried he would be paying high prices for eggs from suppliers and would have to increase the price on shelf.

“We are struggling to get eggs in. Initially, we managed to get some eggs but they sold out. We are a smaller store so we don’t have many suppliers of eggs.

“I fear suppliers that have eggs may push up the price of eggs and we would have to charge consumers more for eggs because of this.”

Sapa echoed the warning.

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Egg prices

“In the short term, we are hoping the normal forces of supply and demand will play an effect on the prices. There will be an increase in the prices of eggs due to the tight supplies until such time we have restocked the lost production/farms,” said Balarane.

The cost of eggs has risen sharply in the last few months. A pack of 30 large eggs at Shoprite cost R60 in September last year. It was priced at the same amount in February and May this year.

The same pack cost R70 in August, but went to R75 earlier this week.

More disruptions?

“This is a very devastating situation with high losses of income by the farmers. Once a farmer tests positive for this Avian Flu, feed, chickens, and eggs get to be destroyed immediately under the instruction of the responsible government official/Vet,” said Balarane.

While the outbreak had affected several food industries, fast food retailers and two informal traders told The Citizen they had not yet experienced any disruptions in getting stock.

Sapa said disruptions could soon end as temperatures rise towards the end of the year.

“Usually when we approach warmer temperatures the Avian Flu cases drop, so we are hoping to see a decline in the spread of the Flu. We are also in discussions with the government to consider vaccinating against this Flu as the long-term solution,” said Balarane.

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Safety concerns

A Shoprite store’s manager told The Citizen though supply remained unchanged, egg sales had decreased because of health concerns. However, the store had not received any complaints or returns.

Meanwhile, Sapa said eggs in trade were safe to consume, but encouraged consumers to apply normal cooking procedures by preparing eggs at temperatures above 60 degree Celsius.

“There are no reported transmissible Avian Flu … in South Africa from chickens to humans, it is, therefore, safe to consume eggs provided normal cooking procedures are taken,” Balarane said.

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Reporting by Shanice Naidoo and Vukosi Maluleke