04OCT24- #Ecuador's small poultry farms are the ones suffering the most from the crisis caused by the shortage of corn.
Due to the lack of the main input for feeding birds, egg production, a fundamental product in the Ecuadorian diet, is in jeopardy.
Tungurahua, Cotopaxi and Chimborazo concentrate 85% of Ecuador's poultry production.
Union warns that egg buckets could reach "exorbitant prices" due to corn shortage
The effects are already evident,
with the massive sale of birds and the closure of at least three small poultry farms in the northern area of Ambato, in the Atahualpa parish, stressed Marisol Molina, executive director of the Union of Egg Producers ( Uniproh ).
According to data from the Ministry of Agriculture, there are 300 registered poultry farms nationwide , of which more than half are located in Tungurahua.
These small and medium-sized companies face greater difficulties in accessing inputs, since, unlike large companies, they do not have storage capacity and depend on daily purchases for their production.
High prices undermine production In Ecuador there are more than 15 million laying hens , which produce around 14 million eggs a day. If they do not have the proper feed, the supply would be reduced in a month, which would raise the price of the bucket.
Holge Sánchez, a poultry farmer from the northern area of Ambato, described the problem with concern. “The price of corn has risen alarmingly.
Before, we bought a quintal for between USD 17 and USD 18, but now it has reached USD 22. ”
The price of a bucket of eggs could rise by USD 3 or more in the last months of 2024
This makes the business unsustainable, says Sánchez,
"especially for small producers who do not buy commercial feed , but instead make their own to reduce costs," said Sánchez.
Sánchez, who runs a small poultry farm with around 10,000 laying hens, said he needs at least 300 quintals of corn a month to feed his birds.
The poultry sector in Ambato warns that without corn, egg shortages will begin in a few months.
However, the lack of supply and the hoarding of the product by large distributors are increasingly limiting their possibilities of continuing to operate.
“If the situation does not improve, many of us will be forced to sell our birds early or, worse still, close our farms.”
Holger Sánchez, poultry farmer from the northern area of Ambato.
A scenario that has already begun to materialize
An estimated 700,000 birds have been sold nationwide in recent weeks in a desperate attempt to prevent further losses, Molina said.
Ecuador covers a demand of more than 1.5 million tons of corn , but this year it has decreased. It is estimated that the harvest will only cover one million, due to many circumstances,
including the fact that farmers stopped producing corn.
According to Marisol Molina, at least 300,000 tons should be imported by April 2025 to control the crisis.
Slight increase in the price of buckets
Antonio Villacreces, leader of the Association of Egg Distributors of the
Wholesale Market of Ambato, reported that at least one million containers of eggs are distributed each month from the 23 warehouses that operate in the market to different parts of Ecuador, including the Galapagos.
“If corn remains scarce and expensive, we will soon see a significant reduction in supply.”
Antonio Villacreces
Villacreces said the increase in corn prices has already been reflected in the price of a bucket of eggs, which has gone from USD 2.80 to USD 3.10 in just a few weeks.
“Eggs are the most affordable protein for most families, and this increase could affect the economy of many households. Although it is still cheaper than meat , a sustained increase could make it inaccessible for certain sectors,” he added.
The poultry industry has made several calls to the Ministry of Agriculture to implement measures to guarantee the supply of corn and other inputs to local producers.
The proposals include temporary grain imports and price regulation to prevent speculation and hoarding.
“We are in a critical situation. The authorities must intervene to prevent more poultry farms from closing down and food prices from skyrocketing ,” Molina insisted.
Concern about unemployment in the sector,
The crisis has also created uncertainty among workers in the poultry sector . Carlos Jácome, an employee at a small poultry farm in Ambato, expressed his fear of losing his job.
“ There are a lot of rumours that the poultry farm might close down . We have already had to sell several birds and it is becoming
increasingly difficult to get corn to feed them. We are afraid of losing our jobs,” she said.
If the situation worsens further, employees, farmers and distributors would be affected by a possible collapse of small and medium-sized farms..." -
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