By Robert Andre Emmanuel
The government and the Antigua and Barbuda Layer Farmers’ Association have agreed to a 45-day period during which the wholesale price of eggs will be set at $13 per dozen.
The $1 increase on the previous $12 is half of what farmers had been pushing for to offset rising operational costs.
The compromise follows days of tense discussions from both sides over the reasonable cost of locally produced eggs.
Recently installed Agriculture Minister Anthony Smith Jr, who spearheaded the talks on behalf of the government, told Observer the government had aimed to take a balanced approach.
“We never wanted this matter to become political. Our primary concern was ensuring that consumers get the best deal possible while also supporting our local farming sector,” said Minister Smith, who chairs the Cabinet-appointed working group tasked with reviewing the proposed wholesale price increase on locally produced eggs.
The Layer Farmers’ Association announced last week that, due to increased costs in production and chicken feed, among other factors, it planned to increase wholesale egg prices from $12 per dozen to $14.
The Cabinet initially proposed a 60-day hold on any price increases to allow for a thorough cost analysis, with Prime Minister Gaston Browne threatening to remove tariffs on imported eggs that have traditionally given local farmers a competitive edge.
“We agreed that we will use the $13 as a middle ground … and then once all the information comes back, we’ll speak to what that says and then further decisions will be made going forward,” the Layer Farmers’ Association President, Adrian Hall, told Observer.
The 45-day period will see several key actions, including maintaining duties and taxes for egg importers and the requirement for importers to obtain a licence from the Ministry of Trade.
“We support the sector, but we need to ensure that the association is being fair to consumers,” Minister Smith emphasised. “Eggs are an important source of protein for many people, and we can’t have prices so high that they become unaffordable.”
He added that the government has been trying to do all it can to support local farmers, including waiving taxes on chicken feed and other supplies.
The association, however, contended that since 2022, the price of layer feed has risen significantly from $52.75 per 55-pound bag to $64, and an increase in shipping costs in September has further strained farmers’ resources.
Hall emphasised that farmers are still hopeful that the cost analysis report will be completed well before the 45-day period has elapsed, looking at a 30-day period.
The government and the Layer Farmers’ Association will now collaborate on developing a detailed plan to help reduce the cost of local egg production while improving the reliability and standards for the industry, which will be submitted for the consideration of Cabinet.
The dispute began when egg farmers, citing increased production costs, attempted to raise prices without consulting the government. This move prompted immediate action from the Cabinet, which initially proposed a 60-day hold on any price increases to allow for a thorough cost analysis.
The government has committed to sending financial experts to conduct a comprehensive cost analysis of egg production.
“The government has been a major stakeholder in the egg farming industry,” Minister Smith explained. “We’ve waived taxes and tariffs on items for farmers, including feed, and implemented high tariffs on imported eggs to protect local producers. Given this support, we felt it was crucial to be involved in any pricing decisions that would affect consumers.”
