When you log on to social media these days, you are bombarded with posts about the egg shortage.
Every now and then, the public hears about a food item shortage, and with rumors spreading on the Internet, people quickly descend into complete panic.
As the next presidential election is only one year away, pundits and cyberarmies find it difficult to resist the opportunity to accuse the government of failing to provide people with the most basic daily items, such as eggs.
However, is there even an egg shortage? If there is, two scenarios are possible: First, no matter how much people are willing to pay, there would simply be no eggs on the shelves. This would resemble a wartime scenario. Second, egg prices would surge, and “cheap” eggs would no longer be available.
It is clear which scenario is playing out in Taiwan.
The government has the responsibility to keep food prices stable. Had the government not intervened, the retail prices for eggs would have increased further, which would have dissuaded people from buying them. An intervention of the “invisible hand” would have naturally resolved the egg shortage.
As the demand for eggs exceeds supply, the average retail price has only risen by NT$0.5 per egg after the government intervention.
However, some suppliers might have participated in a “collusive scheme” to exploit the situation.
For example, some breakfast shops now ask people to pay NT$5 more for an egg, while downstream food companies raised prices for products that contain eggs.
Chicken farmers have not benefitted much from the price increase, and some media outlets have framed the issue and run biased reports that prompted some people to direct their anger over a drop in their purchasing power at the government.
Little do they know that it is those devious suppliers that deserve their anger.
In response to the rising egg prices, some restaurants and shops notified customers that they would raise their prices, and then played the victim by saying that they have been shouldering the higher costs, which they were eventually forced to pass on to their customers.
Some businesses then apologize for the inconvenience.
During my field research, I found that breakfast shops, which buy eggs in bulk, can keep the price they pay per egg down, often paying less than the market price.
Some shops even use liquid eggs to reduce costs.
If breakfast shop A maintains the price for an egg at NT$10, while breakfast shop B raises it to NT$15, smart customers would flock to A.
In a bid not to lose more customers, B might think twice about raising prices in the future.
It has to be emphasized that it is the government’s responsibility to keep prices steady.
However, people who accuse the government of dereliction of duty should instead point the finger at breakfast shops that have raised egg prices to NT$15.
Lin Cheng-wu is a junior-high schoolteacher.
Translated by Rita Wang
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