The cost price of eggs has been rising continuously. According to a cost assessment prepared by a committee of experts from the Agriculture and Forestry University, formed by the Poultry Entrepreneurs Forum, the production cost has increased compared to the previous estimate.
Member Secretary of the Cost Price Study Committee and Associate Professor at the Agriculture and Forestry University, Rampur, Dr. Ananta Dahal, said that the current cost of producing one egg has been calculated at Rs 19.12. Previously, the cost price stood at Rs 16.56. The earlier cost assessment had been conducted three years ago by veterinarians from both the government and private sectors.
Earlier, in the first week of Mangsir, poultry entrepreneurs had sharply increased egg prices. Based on the farm-gate price, the Nepal Layers Poultry Farmers’ Association, which issues support prices, had fixed the rate per crate (30 eggs) at Rs 520 for extra-large (XL) eggs, Rs 505 for large eggs, and Rs 490 for medium eggs.
According to Dr. Dahal, the cost was calculated based on operating a farm with 10,000 layer hens. At a rate of Rs 150 per chick, the cost of chicks amounts to Rs 1.5 million. Expenses for three types of feed, medicines, and vaccines total Rs 34.89 million. Each chick is fed two kilograms of L1 feed priced at Rs 68 per kilogram.
For growing hens, six kilograms of L2 feed are required at an average price of Rs 61 per kilogram. From the 19th week to the 80th week—the egg-laying period—each hen consumes 48 kilograms of L3 feed priced at Rs 60.50 per kilogram. Expenditure on medicines and vaccines alone amounts to Rs 1.1 million.
Similarly, costs for labor, veterinary services, management, electricity, rice husk, shed maintenance, tarpaulin for sheds, gas for brooding chicks, egg crates, and diesel total Rs 6.06 million. This includes labor costs of Rs 2.52 million, part-time veterinary services at Rs 450,000, management expenses of Rs 720,000, electricity costs of Rs 213,996, rice husk expenses of Rs 400,000, shed maintenance of Rs 350,000, tarpaulin for five sheds costing Rs 150,000, and gas expenses of Rs 40,000.
In addition, the cost of egg crates is Rs 896,000, while diesel and generator expenses amount to Rs 319,000. Transportation labor costs total Rs 630,000, vehicle transportation costs Rs 250,000, depreciation of poultry sheds Rs 1.97 million, depreciation of workers’ housing Rs 200,000, and bank interest expenses Rs 4.96 million. Altogether, these expenses amount to Rs 8.01 million.
Adding all expenses, the total cost of producing eggs by rearing 10,000 layer hens comes to approximately Rs 49.86 million. “We calculated the cost price by including all expenses incurred from rearing the hens to delivering eggs to the market,” Dr. Dahal said.
Based on this analysis, the per-egg production cost has been fixed at Rs 19.12. The calculation also considers factors such as not all hens laying eggs at full capacity and losses incurred during transportation to the market.
From the time chicks are raised until 80 weeks of age, around 2,000 hens are estimated to die, leaving 8,000 hens to produce about 2.688 million eggs. Of these, around three percent are broken or unfit for sale, making approximately 80,640 eggs unsellable. Thus, about 2.607 million eggs remain marketable.
On the income side, after the hens stop laying eggs, 8,000 hens are sold at Rs 200 each, generating Rs 1.6 million. Additionally, 300 sacks of manure sold at Rs 200 each bring in Rs 60,000, making total additional income Rs 1.66 million.
The study committee was chaired by Professor Dr. Revanta Kumar Bhattarai of the Agriculture and Forestry University, with members Professor Dr. Subir Singh and Associate Professor Dr. Anil Kumar Tiwari, and Dr. Ananta Dahal as Member Secretary.
An interaction was held among stakeholders on the study report. The Poultry Entrepreneurs Forum issued a statement stating that, after discussion on the report submitted by the study committee, it has decided to endorse the calculated cost price.
Participants in the discussion included Dr. Vijay Kumar Shrestha, Chief of the Avian Disease Investigation Laboratory, Bharatpur; Dr. Prabhat Nyaupane, Chief of the Animal Service Office, Chitwan; senior agricultural economist Tejendra Poudel from Bharatpur Metropolitan City; Rajendra Oli, Vice President of the Chitwan Chamber of Commerce and Industry; Shankar Giri, President of Ratnanagar Chamber of Commerce and Industry; Gopal Gaire, Vice President of Chitwan Industrial Association; and Prakash Shrestha, Treasurer of the Chitwan Chamber of Commerce, among other representatives of poultry-related organizations.
According to the statement, the Nepal Poultry Entrepreneurs Forum has endorsed the committee’s decision that the current production cost of eggs stands at Rs 19.12 per egg after analyzing various expenses involved in egg production.
Forum President Raghunath Bhatt said that a decision has been made to forward the cost price through the District Animal Service Office to the Ministry of Agriculture and Livestock Development for approval.
