Egg price rises due to production fall

Low egg prices compelled many farmers to shut down farms over last few months

FE Team | Published: May 15, 2026 22:36:00

Sultanul Islam
According to egg industry stakeholders, a combination of increased demand and a fall in supply has driven up the price of eggs,.
Egg producers (layer chicken farmers) in the Noakhali region said the fall in supply was caused by the closure of at least 20 per cent of the farms due to outbreaks of diseases, and also due to a low price of eggs, which persisted for many months. Both of these factors have caused many farms to stop production.
The demand for eggs usually increases at the beginning of summer, when winter vegetables are no longer available. In the present situation, the demand for eggs has risen while supply has fallen, forcing the price to increase, just as economic theory would predict.
In the past, when egg prices increased, government officers and the media blamed an "egg syndicate." However, industry stakeholders say that thousands of egg producers and thousands of egg traders are selling every day. This ensures that no group of sellers can artificially reduce supply and increase the egg price.
Layer chicken farmers have expressed relief at the recent egg price increase. They hope the price will stay high for long enough so that they can recover the losses they incurred over the recent months of low egg prices. The farmers claimed that for 7 or 8 months, they sold brown eggs at a price which was Tk 2.0 lower than the production cost of Tk 9.50 per egg.
Munir Uddin (46), an educated farmer in Purbo Noorpur, Noakhali Sadar, told this author on May 8, "I had to sell off around 2,000 layer hens due to outbreak of flu a few months ago, after making losses for five months at a stretch. I lost Tk 5 lakh. Once I heard from traders that the price was rising, I purchased 750 hens that have already been laying eggs." The day before, he sold brown eggs at Tk 10.50 per egg at the gate of his farm. Traders are now calling farmers frequently to buy eggs but, according to his estimate, no less than 30 per cent sheds were empty.
Nurul Karim Sohag (41), another farmer of the same village (Purbo Noorpur), incurred losses amounting to Tk 6 lakh between August 2025 and April 2026. "The consumers' desire for eggs has increased due to less production and increase in the prices of vegetables and fish. Many farmers were compelled to suspend production because they failed to pay back loans, and could not buy feed and medicines. Production has fallen by 25-30 per cent, I guess. If large companies had not produced eggs, prices would have increased further," he expressed his views.
Mesbah Uddin Sujon (40), a layer farmer in Baro Ramdebpur in Kabirhat upazila, said that Noakhali farmers suffered losses for eight months, until the fourth week of April. "Low price and disease outbreaks resulted in the closure of around 30 per cent of the farms. So, production fell," he pointed out.
Shahed Rahat (29), who runs three layer farms, has regretted that there is no publicity when farmers make losses, but whenever they get a good price, people start making allegations about a syndicate. "Hardly anyone cares if the cost increases due to increasing prices of fuel and electricity."
Farhad Hossain Jahan (34) of Char Kolmi village in Companyganj upazila, started layer farming with 1,800 birds seven years ago. At present he has 18,000 hens in eight sheds. "I made profit most of the time, but in about one year I lost Tk 50 lakh because many hens died, and the price of eggs was low. Unless the price stays higher than the production cost of eggs, we will not be able to make up for the losses," he observed.
Jasim Uddin (44), a wholesale trader and owner of Johny Store in Maijdi Poura Bazar, mentioned that they did not have an adequate supply of eggs as many farmers suspended production. "Recently, the demand increased and price also increased. Transport cost has increased due to the oil price hike," he said, adding that he used to collect and sell around 150,000 eggs each day, but he now had about 30 per cent less supply.
Abdur Rahman, owner of Rabiul Haq Dimer Arot (wholesale egg centre) at Sonapur Zero Point in Noakhali Sadar, used to collect up to 50,000 eggs each day to sell to traders, but at present, farmers can only supply around 30,000 eggs each day. Asked how the price of eggs was fixed, he explained that traders like him check the wholesale price in Dhaka, and then decide what price to offer to farmers. "There is no price manipulation in the poultry industry," he expressed his conviction.
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