Worldwide Egg Prices to Remain High in 2023
Egg prices have reached historic high levels in many markets around the globe, creating a huge impact on the egg supply worldwide. According to a recent Rabobank report, prices are expected to stay relatively high throughout 2023, particularly in markets heavily affected by high feed costs, avian flu and regulatory changes.
“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,” noted Nan-Dirk Mulder, senior analyst – animal protein at Utrecht, Netherlands-based Rabobank, whose U.S. headquarters is in New York.
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The report found that high global egg prices reflect a combination of several supply and demand factors. What makes the current situation unusual is that it’s a worldwide phenomenon, with such markets as Europe, Brazil, Mexico, the United States, Japan, the Philippines and New Zealand seeing historic highs at the same time.
High global feed costs, which doubled between mid-2020 and mid-2020, have had a big influence on prices. “Feed represents 60% to 70% of a layer farmer’s costs, so any change or uncertainty surrounding feed costs affects egg prices and supply,” said Mulder.
Additional influential factors include avian influenza outbreaks, which affect layer numbers, and the worldwide market disruptions due to COVID-19, which affected operations.
Regulations introducing production restrictions, shifting consumer behavior due to reduced spending power, and tight supply caused by uncertainty also contribute to higher egg prices, observed Mulder.
In general, egg prices are expected to stay relatively high throughout 2023, with some variation between countries. Prices will stay high in countries with persistent avian influenza pressure, restrictions on grandparent stock or breeding stock imports, financing challenges such as a large number of farms with limited access to finance or the U.S. dollar, and countries in the midst of regulatory changes, like Germany.
Meanwhile, prices are expected to decrease in countries and regions with extreme price peaks like the United States, Europe and Japan, but likely not to the kinds of lows seen in the wake of other crises, according to Rabobank.
In the United States, the current high price of eggs has led discount retailer Dollar Tree Inc. to discontinue egg sales at its Dollar Tree banner stores. Though Dollar Tree-owned Family Dollar stores are continuing to sell eggs, Dollar Tree’s move is expected to last until the fall. Chesapeake, Va.-based Dollar Tree, with 16,293 stores under the Dollar Tree, Family Dollar and Dollar Tree Canada banners across 48 states and five Canadian provinces, is No. 29 on The PG 100, Progressive Grocer’s 2022 list of the top food and consumables retailers in North America.
