June 8, 2026
 

Vietnam egg glut drives processors toward liquid, frozen and export products as farm-gate prices fall below cost

With farm-gate egg prices in some areas at around VND 1,000 per egg against a production cost of up to VND 1,950, processors are accelerating a shift to value-added products including liquid eggs and ready-to-eat formats as a structural alternative to the fresh market.

 

Egg prices across Vietnam have fallen sharply below the cost of production in 2026, with farm-gate prices in parts of Dong Nai province reaching as low as VND 1,000 per egg against an estimated production cost of VND 1,700 to VND 1,950, prompting processors to accelerate investment in liquid egg, frozen and export-oriented product lines.

 

Nguyen Thanh Son, chairman of the Vietnam Poultry Association, said farm-gate egg prices are currently averaging VND 1,100 to VND 1,300 per egg, well below the full break-even point of VND 2,100 to VND 2,300 per egg once collection, transport, processing and distribution costs are included. He attributed the collapse to a rapid flock expansion triggered by the high prices of VND 2,000 to VND 2,600 per egg seen throughout 2025, which drew in both established producers and farmers switching from broiler chicken and pig operations.

 

The oversupply has been compounded by the closure of informal export channels to Cambodia, which had previously absorbed significant volumes of Vietnamese eggs. Feed costs have simultaneously risen by 10 to 15%, further squeezing margins for farmers who expanded on the back of last year's prices.

 

In Dong Nai, which holds the largest poultry population in Vietnam, the total flock reached over 36.2 million birds in the first quarter of 2026, up 3.3% year on year, with the chicken population alone rising 3.9% to 33.4 million. Broiler prices have fallen to VND 26,000 to VND 28,000 per kg from around VND 36,000 to VND 38,000 at the start of the year, while coloured-feathered chicken prices have dropped to VND 42,000 to VND 45,000 per kg from VND 48,000 to VND 49,000.

 

Truong Chi Thien, general director of Vinh Thanh Dat Food Joint Stock Company, said the underlying issue is a lack of effective supply forecasting, with farmers responding to price signals in isolation rather than on the basis of aggregate supply and demand data. He said the structural solution lies in deepening egg processing rather than managing production volumes.

 

Vinh Thanh Dat has produced liquid eggs for several years and is now developing frozen liquid egg products and ready-to-eat formats. Thien said the company is preparing to ship its first official export consignment of ready-to-eat eggs to Japan following nearly two years of product development. He added that most large domestic food processors have already shifted to domestically produced liquid eggs from imported alternatives.

 

A further paradox noted by industry participants is that despite the domestic oversupply, egg powder imports continue, particularly from India, because local producers cannot yet match import prices. Nguyen Xuan Minh, a representative of Spice Production, Trading and Service Co., Ltd., said whole egg powder, yolk powder and white powder remain widely used by food manufacturers for their preservation and shelf-life advantages, indicating significant untapped processing potential.