For nearly two years, Jamaica’s egg farmers have quietly absorbed rising production costs, but now they say the burden has become unbearable. The Jamaica Egg Farmers Association (JEFA), the umbrella organisation representing farmers islandwide, has officially recommended new farmgate prices for eggs in an effort to stem widespread financial losses and prevent further exits from the industry.

Effective Sunday, JEFA has proposed that loose eggs should now be sold at a minimum of $440 per dozen, while branded eggs are priced at a minimum of $480 per dozen. The increase — which does not account for individual farmers’ profit margins — marks the first major price adjustment in years, reflecting a significant percentage increase as farmers seek to recover from years of stagnant pricing.

“Roughly 90 per cent of our egg farmers are currently operating at a loss,” said Mark Campbell, president of JEFA, told the Business Observer.

“The rising production costs are unsustainable, and to make matters worse, many farmers are sometimes foregoing their profit margins because they are dealing with perishable items.”

The absence of cold-storage facilities across many farms has left egg farmers in a precarious position. Without proper storage, farmers often face a choice between dumping their products or selling them at deeply discounted rates. Many opt for the latter, sacrificing profit margins just to secure sales, but over time this leads to financial ruin.

“Farmers who offer extended price guarantees to supermarkets or restaurants end up digging themselves into a financial hole,” Campbell explained.

“One-off sales are manageable, but when farmers commit to long-term discounted prices, they’re setting themselves up for failure.”

JEFA first recommended a price increase two years ago, during the height of the COVID-19 pandemic, when consumers were already grappling with skyrocketing food prices and rising interest rates. However, the suggested increase never took effect, and prices have remained stable ever since. This price stability, coupled with high demand for eggs as a more affordable protein source, led to a 8.9 per cent rise in egg sales in 2023, totalling 254.9 million units sold compared to the previous year.

But while egg sales surged, production costs climbed even faster.

“Everything from labour and transportation to medication and electricity has gone up,” Campbell noted.

“Feed alone, which accounts for up to 70 per cent of production costs, leaves farmers with only 30 per cent of their revenue to cover all other expenses, including replacing birds, paying staff, and operating their farms.”

The situation worsened in June 2024, when Jamaica implemented a new national minimum wage of $15,000 per 40-hour week, further increasing labour costs for farmers. One month later, Hurricane Beryl — a rare Category 5 storm — battered the island, causing widespread devastation, particularly in south-western Jamaica. For egg farmers, this meant additional expenses, including more vitamins and increased feed portions to maintain the productivity of their flocks, which had been “stressed” by the hurricane.

“Most farmers can’t afford to replace their birds because they’re operating at a loss,” Campbell explained.

“They’re holding onto older birds with productivity as low as 50 per cent, when a new bird could produce at rates as high as 90-95 per cent. In this industry, once a bird’s productivity falls below 75 per cent, it’s no longer profitable.”

JEFA’s new pricing recommendation is intended to provide a lifeline to egg farmers, many of whom are teetering on the edge of financial collapse. Whether the market will accept the higher prices remains to be seen, but for farmers, it is a necessary step to ensure the survival of the industry.

“The JEFA wishes to inform our customers that these increases are essential for Jamaica to retain its self-sufficiency in eggs,” the association said in the public notice.

The recommended price increases for table eggs come just months ahead of the busy festive season, when demand is expected to surge. As the holiday period approaches, egg farmers are bracing for higher consumer demand while balancing the new price structure, hoping it will offer much-needed relief.