December 13, 2023
Bird flu outbreaks in Japan raise concerns of egg shortage and record prices
Recent bird flu outbreaks at four poultry farms in Japan are causing concerns of a potential "egg shock," with experts warning that prices may reach record highs due to an egg shortage, The Mainichi reported.
Mamoru Gomi, president of a Tokyo supermarket, expects egg prices to rise, recalling the impact of last winter's surge in costs. The increasing cost of living has led customers to cut back on food expenses, with egg sales dropping significantly.
Gomi highlighted changes in consumer behaviour, stating that people who used to buy eggs every other day are now purchasing them weekly or bi-weekly. Despite lowering prices, customer buying patterns have shifted. The potential decrease in egg supply due to bird flu outbreaks could have a substantial impact, especially during the high-demand Christmas and end-of-year season.
JA.Z-Tamago Co, the National Federation of Agricultural Cooperative Associations egg wholesaler, reported that the monthly average wholesale price of medium eggs in the Tokyo area reached a peak of JPY 350 yen (US$2.40) per kg in April and May this year, the highest since 1993. Bird flu outbreaks, coupled with rising chicken feed prices and a weakening yen, contributed to supply shortages.
Seiji Nobuoka, a former professor at the Tokyo University of Agriculture familiar with egg production, emphasised the lingering effects of the previous season's culling of approximately 16.5 million egg-laying hens, with 40% yet to be replaced. If bird flu spreads widely again while the supply system is not fully restored, prices could soar to 380 yen (US$2.60) per kg.
The ongoing bird flu incidents in Ibaraki, Saitama, and Kagoshima prefectures, following an outbreak in Saga Prefecture on Nov. 25, have led to the culling of around 178,000 chickens. The unpredictability of the situation and the lack of a fool proof prevention method raise concerns about the potential impact on egg prices and supply.
- The Mainichi