April 13, 2023

 

Egg prices to remain high this year

 

A recent Rabobank market report has found that egg prices worldwide have reached historic high levels, affecting egg supply globally, The Poultry Site reported.

 

The report said egg prices are expected to remain relatively high through 2023, particularly in markets heavily impacted by avian influenza, high costs, and regulatory changes.

 

Nan-Dirk Mulder, senior analyst, animal protein at Rabobank, said Rabobank's global egg price monitor reached a new record in Q1 2023, with the index now peaking above 250, which means prices are 2.5 times higher than the reference year of 2007, and have increased more than 100% since this time last year.

 

The high global egg prices are the result of a combination of supply and demand factors. Many markets, including those in Europe, Brazil, Mexico, the US, Japan, the Philippines, and New Zealand, are experiencing historic highs at the same time.

 

High feed costs have a significant impact on prices. Mulder said deed represents 60% to 70% of a layer farmer's costs, any change or uncertainty surrounding feed costs affects egg prices and supply.

 

Between the middle of 2020 and the middle of 2022, global feed prices doubled.

 

Other influential factors include avian influenza outbreaks, which affect layer numbers, and global market disruptions caused by COVID-19, which affect operations.

 

Mulder said government regulations imposing production restrictions, changing consumer behaviour due to reduced spending power, and tight supply due to uncertainty all contribute to high egg prices.

 

The report also said egg prices will remain high in countries with persistent avian influenza pressure, restrictions on imports of grandparent stock or breeding stock, financing issues such as a large number of farms with limited access to finance or the US dollar, and countries undergoing regulatory changes, such as Germany.

 

Prices are expected to fall in countries and regions with very high price peaks, such as the US, Europe, and Japan, but not to as low as seen after previous egg crises.

 

-      The Poultry Site