W28: Chicken Egg Update

Published 2023년 7월 21일
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In W28 in the chicken-egg landscape, from the beginning of 2022, selling organic eggs in the European Union (EU) requires adhering to a waiting period if laying hens have been treated with chemical-synthetic deworming agents. The regulation aims to enhance consumer protection by implementing a waiting time rule for conventional worming agents, putting an additional 48 hours to the processing time. However, veterinarians and poultry farmers express concerns that this new regulation negatively affects animal welfare and farm income. The intention of the United Kingdom's (UK) government to allow the importation of battery eggs from countries like Mexico under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) has sparked concerns among animal welfare groups. These groups oppose the sale of battery eggs in post-Brexit trade deals, citing the cruel confinement of egg-laying hens in small cages connected in long rows.

Before the Russian invasion, the cost of 10 eggs in Ukraine was approximately USD 0.95. However, due to a 20% decline in egg production caused by the full-scale war, egg prices rose significantly by 2.3 times in 2022. Since the beginning of 2023, the prices have stabilized. However, Ukrainian egg prices are expected to increase again to USD 1.91-2.05 per dozen in Q4-23 , driven by seasonal feed price increases and the potential recovery of mass power outages. In the Netherlands, egg prices reached a record high in early 2023, but free-range egg prices decreased slightly by March, settling at USD 2.66/kg in May-23. Free-range egg prices were still nearly 50% higher year-on-year (YoY) despite the drop in prices. Consequently, revenues substantially increased, with May-23 generating USD 82,026 more than May-22. Additionally, the rise in feed prices, which started in Mar-22 due in part to the conflict in Ukraine, reached a record level in Jun-22, leading to a significant increase in egg production costs. However, by May-23, feed costs were 14% lower YoY, while the purchase price of pullets increased by 9%.

In Indonesia, chicken egg prices have surged to USD 2.13-2.20/kg in W28. However, it is anticipated that both chicken meat and egg prices will stabilize and return to normal within the next month. The price surge is attributed to a decline in egg production caused by cutting broodstock, resulting in reduced egg supply and subsequent price hikes. Lastly, in Australia, a national agreement has been made to ban caged hen eggs by 2036. This move is expected to lead to higher egg prices and possible compensation claims from producers, as caged hens currently account for half of the country's total egg production. Some farmers had made investments based on the assumption that they had until 2046 to comply with the guidelines. However, New South Wales has decided not to follow this agreement and will not phase out caged eggs by 2036, citing the need to protect the industry and consumers.

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