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Eggs export can fetch over $6.7m annually

Zahid Baig

LAHORE: If given necessary support, Pakistan can take 15 percent market share from export of eggs to some Arab countries and Bangladesh, which is estimated at about 34 million hatching eggs valued at $6.57 million.

This was stated by the convener of the standing committee of the Lahore Chamber of Commerce and Industry (LCCI) for agro-based industries and member of central executive committee of the Pakistan Poultry Association, Abdul Basit, while talking to Business Recorder on Saturday.

He stated the estimated world export trade of eggs in 1999 stood at 7.2 billion eggs of total value of $ 500 million. The hatching eggs export out of Netherlands during January-June 1999 (six months) stood at 86.2 million eggs.

Kuwait, Saudi Arabia, UAE and Libya, imported approximately 15.7 million eggs during the six months worth $2.61 million. These imports are probably 20 percent of the total annual imports of these countries, he added.

Basit maintained that other exporters to these countries are France and India, and India gaining progressively larger share. The total potential of exports to Libya, Kuwait, Saudi Arabia, UAE, Malta, Yemen, Bahrain, Muscat and Bangladesh is estimated at over 225 million eggs annually valuing $ 45 million, he added.

Talking about the exporters problems, he claimed that the international trade price of hatching eggs hovers around an F.O.B price of $ 0.16 per egg and the C&F price is $ 0.19. However, our cost of production being $ 0.20 per egg and packing and forwarding cost of $ 0.01 and freight cost to UAE at the rate of Rs 30 per kg would be $ 0.40 per egg, which would push the C&F cost to $ 0.25 per egg against the prevailing C&F price of $0.19.

Thus at current cost of production and freight cost, there is a loss of $ 0.6 per egg, he claimed.

Suggesting measures, Basit stated, that the PIA should give the same freight rate to eggs as it is offering to fruits and vegetables that is at Rs 18 per kg. He added it would reduce the loss by $ 0.02. The exporters are paid for their dollar at Rs 51.35; whereas the open market rate is Rs three more, which may be paid as freight subsidy as is being given in case of export of potatoes, he added.

He also suggested that hatching eggs being live embryos, required to be held at a temperature of 75 øF, hence there is a need to make the same at Karachi, Lahore and Islamabad airports. He hoped, if these recommendations are accepted, Pakistan poultry industry could progressively take a larger share of the market taking an edge over Europe, because of the shorter freight duration and more importantly, eggs would be supplied from breeders kept in temperate climate, he added.