ECONOMYNEXT – Sri Lanka has decided to import hatching eggs to re-build the country’s layer chicken population the Ministry of Agriculture said after egg production collapsed in the wake of price controls and high feed costs.
Sri Lanka is estimated to need to 2,990 million eggs a year. The monthly requirement is between 249-250 million. But it had dropped to about 30 million, a ministry statement said.
In 2022 the rupee collapsed after two years of money printing and feed costs went up amid forex shortages and a global commodity bubble fired by reserve currency central banks.
Sri Lanka then imposed price controls on eggs, and industry officials say farmers killed layer chicks and withdrew from the business. Hatcheries with parent stock then had low demand for day old chicks then also could not maintain their parent bird stock.
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Sri Lanka’s layer parent bird stock which was around 80,000 had dropped to around 70,000 amid the Coronavirus crisis then tumbled, they say.
The Ministry of Agriculture says the parent bird flock and dropped to 40,000.
Though egg prices are now higher and feed costs have also stabilized, farmers who order chicks now are put on a waiting list till March.
It takes about 5.5 months for parent birds to reach maturity. For parent birds to grow and for layer chicks to reach maturity it would take around 11 months.
The import of hatching eggs is expected to speed up the process.
The Department of Animal Production and Health will facilitate the import of hatching eggs, the ministry said.
The eggs will be imported by the state-run Livestock Development Board and also the private sector.
Parent birds will be produced at the hatcheries of Miriswatte and Marawila hatcheries of the Livestock Development Board, the ministry said.
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Ex-Sri Lanka President J R Jayewardene stopped price control in 1978 as part of economic liberalization after money printing from late 1960s derailed the economic program of Dudley Senanayake.
Sri Lanka followed a close economy in the 1970s under Prime Minister Sirimavo Bandaranaike with price controls, shortages, black markets, import controls, exchange controls and licenses.
President Jayewardena removed the price control and liberalized the economy.
“These are actions which required considerable courage,” Singapore’s economic architect and one time Finance Minister Goh Keng Swee said two years later.
“They constitute a break with the conventional wisdom of past decades based on a re-distributive ethic, extensive state control and hostility of free enterprise and private ownership.
“It brought to an end to shortages, queues, black-markets with their corrosive effect on personal integrity.”
Two decades later price controls were back.
Last year Sri Lanka defaulted on foreign loans following the worst currency crisis in the history of the island’s soft-pegged central bank. (Colombo/Jan11/2022)