The government of Antigua and Barbuda has announced plans to liberalize the egg market, following the decision by the Antigua and Barbuda Layer Farmers Association (ABLFA) to raise egg prices. This move comes less than a week after Prime Minister Gaston Browne urged the association to reconsider its price hike, which he says could disproportionately affect vulnerable populations.
The ABLFA had announced a price increase for both white and brown eggs, with prices rising from EC$12.00 per dozen to EC$14.00, or EC$420.00 per case, up from EC$360.00. The association cited rising operational costs, including heat stress on poultry and increased feed prices, as key reasons for the hike.
In response, Prime Minister Browne took to social media, warning that the two-dollar increase could push the retail price of eggs to EC$18-19 per dozen. “This unjustified increase puts a critical source of protein beyond the reach of the poor and vulnerable,” he stated. He further warned that failure to halt what he described as a developing “egg cartel” would lead to further price increases in other essential commodities.
As a result, the government has decided to open up the egg market by eliminating the 40% duties and taxes on imported eggs and removing import permit requirements. Browne made it clear that no further subsidies or protections would be extended to the local poultry farmers who, according to him, are inflating prices for profit rather than benefiting from government subsidies designed to keep prices low.
“The poultry industry in Antigua and Barbuda will now be regulated by a Poultry Development Board,” Browne announced. This board, comprising representatives from the Ministry of Agriculture, the Poultry Association, accountants, and the Chief Veterinary Officer, will be responsible for setting egg prices and ensuring that farms meet the necessary sanitary conditions to protect consumers. The board will also address the increasing incidences of salmonella and other microbial diseases, and any farms failing to meet these standards will be closed.
Meanwhile, Valerie Edwards, general secretary of the ABLFA, denied claims of an agreement with the government to prevent the price increase. Edwards stated that discussions with the government were ongoing and no final decision had been reached.
Despite this, the government remains firm on its stance. Following a recent Cabinet meeting, officials pointed out that neighboring islands with similar climate conditions had not experienced significant feed cost increases and were maintaining lower egg prices. The Cabinet expressed skepticism over the necessity of the price hike, especially given the regional context.
In a bid to bring transparency to the matter, the government has commissioned an accounting firm to conduct a study over the next 60 days. This study will determine the actual costs incurred by farmers in producing eggs, which, according to the Cabinet, was unknown by the ABLFA representatives. The findings from the study will inform future decisions on poultry pricing and production in the country.
In the meantime, the Poultry Development Board will take over responsibility for determining the reasonable cost of eggs and poultry products for consumers, removing that power from producers alone. This regulatory body is intended to prevent the formation of cartels and ensure that price hikes are justified and necessary, rather than driven by profit motives at the expense of the public.
