Excellency,
In light of the Poultry Association resistance in rolling back the increase in the wholesale price of eggs by almost 20 percent, your failure to consult with stakeholders and the impact on the poor and vulnerable who consume eggs as a major source of protein; kindly note that tomorrow, the Cabinet will consider removing all duties, taxes and restrictions on the importation of eggs.
This is to provide consumers, especially the poor and vulnerable with more affordable alternatives.
In addition, we will mandate more regular inspections of poultry farms, to determine if the sanitary and phytosanitary conditions in which local eggs are produced is satisfactory.
This is to address the cases of Salmonella poisoning and potential deaths from anti microbial resistant diseases, that are estimated to kill up to 50 million people globally in the next decade, in the absence of improved sanitary and phytosanitary conditions and new antibiotics to treat those resistant microbial diseases.
As a government, we are duty bound to contain prices in the interest of all, especially in light of increase in global inflation and its attendant challenges to consumers globally.
The concessions including the exemption of duties and taxes on all inputs including chicks and feed, the 40 percent tariff on imported eggs, as well as, the 25 percent subsidy on water were designed to keep the cost of domestic eggs at affordable levels.
Your association has increased egg prices by over 40 percent within the past two years, far in excess of the peak inflation of 10 percent in 2022.
Your association has failed to contain prices and is now seeking to transfer its inefficiencies to consumers. We note that your association has given a number of spurious reasons for the increase, including heat waves and the two percent increased in ABST, which does not apply to egg production or the retail of eggs which is exempt from ABST.
In the absence of justifiable reasons to support your claim it a 20 percent increase in production cost, our government is now forced to liberate the egg market, to drive egg prices down, in the interest of consumers.
Your stubborn insistence on hiking wholesale price of eggs to $14, with a possible retail price of $18-19 per dozen, has forced us to pursue this course of action.
Please note that your association is responsible for any consequence/s to local producers, arising from the Cabinet’s forced decision to liberate the market in the protection of consumers.
Please be guided accordingly.
