Price cap on eggs pointless without proper monitoring
An industry official warns that a cap on the retail price of table eggs will be ineffective without strong market monitoring and enforcement.
Any proposed price cap on table eggs will fail without proper market monitoring and enforcement, an industry official warned, as the government considers imposing a maximum suggested retail price (MSRP) to rein in high costs in wet markets and grocery stores.
Francis Uyehara, President of the Philippine Egg Board Association, voiced concerns during a recent radio interview, saying the real issue lies not with egg producers but with middlemen and retailers manipulating pricing and sizing.
“For an MSRP to work, the government must first fix how eggs are sold and labeled in the market,” Mr Uyehara emphasized. He noted that in many cases, prices are posted without indicating egg sizes, leaving consumers in the dark about whether they are paying fair prices.
“Even when sizes are labeled, some retailers cheat by selling small eggs as medium,” he added. “Without addressing these practices, imposing a price ceiling would be meaningless.”
Mr Uyehara also casts doubts about the government’s ability to enforce an MSRP, pointing to previous failed attempts at capping pork prices. Without the manpower to properly monitor retailers, the proposal is unlikely to be effective.
Retail prices steady despite lower farmgate prices
Currently, farmgate prices for medium-sized eggs—the industry benchmark—hover around PHP 6.50-7.00/piece.
“This has not move for almost two weeks, and I don’t think it will increase. In fact, there’s a big chance that farmgate prices will decline,” he said.
While prices spiked above PHP 7.00 in December, they dropped to around PHP 5.00 in January and February. Yet according to Department of Agriculture data, retail prices have remained unchanged.
“This is another issue the government should investigate,” he said, noting that retail prices should reflect movements in farmgate prices. However, right now, they do not.
Mr Uyehara said retail prices for medium eggs should not exceed PHP 9.50 per piece, given current farmgate rates. However, the Egg Board’s own monitoring shows prices reaching PHP 11-12/piece in some markets.
He lamented that the gap between farmgate and retail prices has always been a problem for the poultry and livestock sector, and remains unresolved.
Summer heat may impact production
With the country entering its hottest months, Mr Uyehara warned that heat stress could affect egg production, potentially resulting in a higher volume of smaller-sized eggs.
Despite this, he assured consumers that the weight standards used to classify egg sizes will remain unchanged, and that producers remain committed to transparency and fairness in the marketplace.
