Global egg prices are expected to “stay relatively high throughout 2023”, especially in markets that have been hard hit by avian influenza (bird flu), according to a new report published by Rabobank today (Thursday, April 6).
Egg prices hit a record high in many markets in quarter one of 2023 and according to Rabobank, have increased by 100% since this time last year.
According to the bank’s latest “Eggflation” report, high global prices have been driven by a combination of supply and demand factors.
One other key factor according to Nan-Dirk Mulder, a senior analyst with Rabobank, has been high feed costs which has had a big influence on egg prices.
“Feed represents 60-70% of a layer farmer’s costs, so any change or uncertainty surrounding feed costs affects egg prices and supply.
“Global feed prices doubled between mid-2020 and mid-2022,” Mulder said.
Egg prices
However, Mulder said global egg prices have also been highly influenced by bird flu outbreaks, disruptions due to Covid-19 and changing consumer behavior because of cost-of-living pressures.
In its latest report the bank also noted the introduction of new regulations in some countries.
“The introduction of male chick culling at the hatchery level in Germany in 2012, for example, has had a big impact on the market.
“Similarly, the introduction of a cage ban for producers in New Zealand has led to a 5-12% drop in laying hens in the country,” the report outlined.
According to Rabobank historically, egg prices followed the United Nation’s Food and Agriculture Organisation Food Price Index but since 2022, prices have kept rising while food prices have started to drop.
“In general, we expect egg prices to stay relatively high throughout 2023. However, there will be differences between countries,” the bank stated.
According to Rabobank, “one of the main tools to stabilise markets is better value chain cooperation”.
It also highlighted in its report that a “greater commitment from buyers to offset farmers’ high production risks” would also help stabilise global egg prices while another strategy it outlined in the report is to “better control” bird flu in some countries.