Uruguay heat wave: 400,000 hens died and egg prices rose; shortages ruled out

RIO DE JANEIRO, BRAZIL – The price of eggs is rising, in the Metropolitan Agri-Food Unit (UAM), where they are sold at wholesale level, the value of extra large eggs increased 19% and medium-sized by 14% in 10 days, according to data from the Farmers’ Observatory.

This is mainly due to the death of laying hens during the last heat wave, but also to the fact that hens produce less in summer.

According to Minister of Livestock, Agriculture and Fisheries (MGAP) Juan Ignacio Buffa, 400,000 laying hens died, representing 10% of the national stock. But he stressed that “the sector has a rapid response capacity.”

Mario Fasanelo, a producer from San Bautista who lost 6,000 hens, explained that the sector “had been overproducing,” so he assured that there will be no shortage of eggs in the market.

“Last year was a year to forget, we were producing more than necessary, the price was low and costs were rising. Now supply and demand are even, I think we will produce what is actually consumed and people should rest assured that there will be no shortage of eggs,” he said.

Large eggs are expected to be the most scarce and where prices should increase the most. According to Fasanelo, the drop in the production of these eggs tends to occur in the summer months, when hens eat less.

“With this heat, from 11 AM to 4 PM hens drinks water and eat when it starts to cool down, but it never reaches what they normally eat, that is why eggs are smaller,” he explained. In very hot months, and also when temperatures are very low, egg production drops by 5%, he said.

The producer said that the lost production level could be restored in 4 or 5 months.

PRICES

In downtown Montevideo’s stores, a 30-egg carton costs between $165 (US$3.70) and $179. In greengrocers’ shops, the price varies between $185 and $250, depending on the egg size. In large supermarkets the price also reaches $250.

In smaller units, prices are lower. Six eggs can be bought for between $46 and $74 in greengrocers and supermarkets, while a carton of 15 eggs costs between $124 and $165.

At wholesale level, in the UAM a crate with 30 dozen extra large eggs costs $2,150, while a crate of medium eggs costs $1,600.

UAM’s Farmer Observatory member Diego Romero explained that the prices consumers get in the retail market may vary depending on whether traders bought the product at UAM or directly from producers.

DIFFERENT REALITIES IN THE SECTOR

MGAP reached poultry producers due to the heat wave and after the meeting, Buffa pointed out that there are two realities within the sector. On the one hand, the loss of laying hens and, on the other, the situation of the poultry meat market.

After a survey by the Uruguayan Chamber of Poultry Processors (CUPRA) with poultry meat production companies, losses were estimated at 3.9%. In total 97,000 meat production birds died. “We are very well supplied. No impact on prices is expected,” he said.

The MGAP decreed a poultry emergency throughout the country for 90 days to provide financial aid to producers, which is currently being defined.

Last Friday, poultry sector producers met with General Directorate of Farming head Nicolás Chiesa, and authorities of Banco República, to discuss financial aid.

Chiesa reported that the bank is studying the possibility of developing long-term credit lines so that those affected may make the structural changes needed in their hatcheries. Short-term credit lines have already been confirmed, “we only need to complete our work for producers to be able to access them,” he added.

With information from El Observador