This is the Reason for Rising Egg Prices According to IPB University Experts
Dr. Rachmat Pambudy, IPB University Lecturer from the Department of Agribusiness, Faculty of Economics and Management (FEM) said the factors that caused the increase in egg prices in the market. According to this IPB University Agribusiness Expert, the increasing consumer demand ahead of the Christmas and New Year holidays is one of the reasons.
“This happens almost every year. Once upon a time, the eggs fell (price) due to the large number of new businesses in the laying hens farming sector. Due to the absence of production control, there has been a shortage of egg stocks caused by the decline in the population of laying hens in Blitar Regency, East Java, "he said.
So, he continued, an increase in consumer demand will have an impact on increasing egg prices. In addition, the distribution is still quite long, not directly to consumers.
"And another factor is that eggs are one of the products distributed by the government in social assistance programs to the community during the pandemic," he explained.
Therefore, according to him, those who are responsible for the increase in egg prices are different. Sometimes price increases occur because the market controls or there are price instructions controlled by the Ministry of Trade and the Ministry of Economy.
"In order to avoid major losses to several parties, it is better if the price stability is regulated by the government. When the price is high, the government can maintain it and when the price is low, the government can support it. Because the process to get to consumers is a long process,” he added.
Sometimes, he said, what happens is that the farmers do not get big profits. For this reason, as an effort to overcome price fluctuations, the government needs to conduct a good production data collection.
“It is necessary to record good production results and there is a pricing mechanism. In addition, there must be a buffer body such as Bulog and concrete actions so that regulations can be evaluated regarding the prediction and procurement of laying hens needs. In addition, regulations can also be evaluated regarding the prohibition of selling domestic chicken hatching eggs so that they do not reach consumers," he said. (RS/Zul) (IAAS/SYA)
Published Date : 06-Jan-2022
Resource Person : Dr Rachmat Pambudy
Keyword : eggs, price increase, economy, IPB University
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