The Bhutanese Leading the way.
Egg prices have shot up as high as Nu. 600, raising widespread public concern. Some have even gone as far as asking whether vendors are now selling “eggs of gold” for that price. However, the underlying reasons are more nuanced, driven by a series of factors determining the jump in egg prices.
Tsirang, Dagana, and Samtse, among others, remain prominent egg-producing Dzongkhags in the country. A closer look reveals several factors at play: feed prices, seasonal output differences, brokers, and retailers.
Poultry farmers are now selling eggs at a much higher price compared to rates from a couple of years ago. Farmers from Tsirang, Dagana, and Samtse shared that they sell their eggs for Nu. 3,200 to Nu. 3,300 per carton.
For reference, one carton holds 7 trays of eggs, which comes out to roughly Nu. 471.40 per tray (assuming a carton costs Nu. 3,300).
High Feed Costs
Purna Bdr. Pradhan, a poultry farmer from Tsangkha Gewog in Dagana, shared that he charges Nu. 3,300 per carton of eggs.
“Before, we used to sell them for around Nu. 1,600 to Nu. 2,000 at best. Now, with the rise in feed costs, we have no option but to sell them at higher rates to sustain ourselves,” he shared.
Another farmer, Sangay, noted: “The feed costs more than Nu. 2,200, and a 50kg bag only lasts a day. Feed is just too costly.”
Farmers shared that their primary feed is Karma Feeds, which costs Nu. 2,300 per 50kg bag. Additionally, separate feed must be purchased for smaller birds, costing around Nu. 2,400.
Suk Man, a poultry farmer from Sergithang, Tsirang, said he uses a 50kg bag of feed per day for his chickens. His weekly egg output averages around 6 to 7 cartons as the winter season slowly sets in.
Assuming a farmer sells 7 cartons a week, gross weekly revenue totals Nu. 23,100 (Nu. 3,300 7 cartons). Over a four-week month, this equals Nu. 92,400.
With a 50kg bag costing Nu. 2,300 and used daily, farmers like Suk Man purchase about 30 bags a month, coming to Nu. 69,000 for feed alone. Deducting this leaves a modest profit of Nu. 23,400. Furthermore, farmers pointed out that additional costs such as purchasing cartons and trays, transportation, and staff salaries-pile on quickly.
This reveals a severe margin gap at the source: high feed prices are choking poultry farmers.
Suk Man added that egg production is also heavily reliant on seasonal variations. “Mostly during the summer season, there is greater production. We get more than 6 to 7 cartons during the peak season,” he said.
Are Brokers Pushing Egg Prices?
Another driving factor behind the price hike involves brokers who buy eggs from farmers and sell them to stores and retailers in urban centers. These brokers typically drive their Boleros directly to poultry farms, collecting eggs at the base selling price set by the farmers.
While farmers offer rates around Nu. 3,300 per carton, a dairy and egg store owner at the Centennial Farmers’ Market in Thimphu reported purchasing her recent stock at Nu. 3,750 per carton from Tsirang and Dagana.
This marks a Nu. 450 price markup added by brokers before the eggs even reach vendors and retailers in town.
Farmers allege that unregulated middlemen are charging arbitrary prices, leading to inflated costs for consumers.
Another poultry farmer, San Bdr. Tamang, suggested: “It would be better if the government creates a system for brokerage with fixed price ceilings for transparent pricing, ensuring a balance where brokers do not profit excessively nor farmers fall into deep losses.”
Because brokerage remains unregulated, farmers say they have no visibility into how much brokers ultimately charge. Some farmers try to keep their selling prices reasonable at Nu. 450 per tray (Nu. 3,150 per carton).
A Broker’s Perspective
Judha Bir Rai is a broker with 10 years of experience, transporting eggs from Tsirang, Gelephu, and Samtse.
He offers a different perspective, attributing the current price hike to an egg shortage at the source and noting that farmers prompt brokers to compete for the best prices.
“Since it is not the peak season and there is a shortage of eggs, farmers make brokers compete for prices. They will demand a high price, and if we hesitate, they will tempt us by saying others are offering better prices,” he explained.
With a carrying capacity of around 65 to 70 cartons per trip, Judha said he recently bought eggs at Nu. 3,450 from farmers and sold them at Nu. 3,650 to vendors in Thimphu, keeping a profit margin of around Nu. 180 to Nu. 200 per carton.
“We have a delivery to Thimphu tomorrow and the price we have brought it is Nu.3,450. Farmers might also push it to Nu.3,500 next week due to the competition and shortage,” he said.
The Final Retail Markup
Finally, retailers and vendors enter the chain. With brokers charging Nu. 3,750 per carton to shops (roughly Nu. 535.70 per tray), retailers must factor in their own profit margins when selling to consumers. By adding Nu. 30 to Nu. 70, the final end-consumer price lands between Nu. 560 and Nu. 600 per tray.
A female store owner in Thimphu noted, “We don’t even see eggs in the market at times. This is simply the price the eggs carry when they arrive from down south.”
Other Contributing Factors
Judha Bir Rai noted that the market is experiencing a general shortage, compounded by the exhaustion of imported white eggs from India.
Additionally, some industry players allege that two to three months ago, a significant number of day-old chicks (DOC) died following a 42-day vaccination cycle, creating supply bottlenecks. However, some farmers remain optimistic that the supply situation may ease within the month.
