EGG suppliers are facing a glut and drastic drop in prices because of the movement-control order (MCO), which hit demand badly.

They told The Malaysian Insight demand dropped by almost 40% as restaurants, hawkers and catering companies have shuttered during the MCO.

Adding to their woes are some supermarkets offering a carton of grade C eggs at RM3 for a tray of 30, which is RM2 less than the cost price. This means the eggs are sold at 10 sen each.

Federation of Livestock Farmers Associations of Malaysia (FLFAM) deputy president Lee Yoon Yeau said the sale of grades AA, A and B eggs is stable as prices are maintained at 30 to 40 sen per egg.

“We, however, have an oversupply of grade C eggs.”

At the same time, he said, there is a shortage of grades AA and A eggs, while the supply of grade B eggs is stable.

Every Ramadan, the demand for eggs drops by 5% but this year was worse.

“When the MCO was implemented, the demand for eggs increased as people rushed to stock up,” said Lee.

“Many egg traders were worried about the shortage of supply and rejected orders for export to Hong Kong and Singapore, resulting in an overload of supply locally.

“Our local supply is between 25 million and 26 million. Due to the restrictions, the demand for eggs in April increased by 20%, but dropped in May by 30% to 40%.

“We were also affected because hawkers selling roti canai and nasi lemak who used to buy in bulk were forced to stop operating.”

The association is expecting things to pick up again in June and hopes to resume exports to Hong Kong and Singapore.

Malaysia’s monthly egg production was 30 million and it exports about 10%-13% to Hong Kong and Singapore.

A poultry farmer said the cost of an egg has dropped by 30 sen.

“The demand for eggs is greatly reduced in the market. We are losing out after selling each carton for only RM3 or RM4,” said Heng from Malacca.

“With the MCO, farm operators cannot see any way forward.”

He added that it’s not easy working on the farm the whole year.

“The farm is a 3D job. It’s dangerous, difficult and dirty. The breeder must ensure that the chickens are free from disease, work long hours, and it smells bad.

“The number of eggs produced by each farm is determined by various factors. When the supply at a certain farm is low and supplies in other farms are stable, then the market supply will also be affected. The natural price of eggs will follow the market.”

The MCO, implemented since March 18 to curb the spread of Covid-19, is now under a conditional phase until June 9. – May 28, 2020.