Chicken Meat and Egg Prices Rise as Taiwan's Poultry Deficit Grows

During the first week of March 2023, breeding chicken wholesale prices in Taiwan have averaged TWD 59.67/kg, which represents an increase of 0.2% month-over-month and 11% year-over-year. This also represents the highest monthly average since July 2022, and, along with that month’s level, also the highest in at least three years.

Source: Tridge

Higher chicken meat prices are a result of low supply, which has also affected chicken egg supply and egg prices. Local reports in early February mentioned that the daily production of domestic chicken eggs had fallen by 6% to 114 thousand 200-egg cartons from December 2022's levels. This number represents a deficit of roughly 1 million eggs compared to Taiwan's typical daily consumption. Other reports from early March mentioned that egg-laying hens fell 29% from end-2022. As a response, Taiwan's Poultry Association agreed to hike up prices.

The reasons behind the low supply include: unfavorable cold weather, a natural seasonal decline due to chickens being in a molting phase during the winter, the global outbreak of avian influenza, and high input costs, particularly of feed, which disincentivize more production.

According to Donna Chao, Tridge representative in Taiwan, chicken meat inventory will be tight during the month of March, and more imports would be needed to alleviate the situation.

On March 10, Taiwan's Council of Agriculture (COA) announced that an import program that began in the past weeks would continue until December 31, 2023. The import program includes chicken eggs and also live egg-laying hens to boost domestic egg production. The COA minister mentioned that egg production could stabilize by May or June. 

Taiwan imported a total worth of USD 274 million of poultry meat (HS Code 0207) in 2022, up by 58% YoY. The only sources were the United States and Canada. In the same year, Taiwan imported a total of USD 5.9 million worth of breeding chickens (HS Code 0105111), compared to USD 3.8 million in 2021 (up 55% YoY). In January 2023, Taiwan imported USD 660 thousand of breeding chickens, which represents an increase of 375% compared to January 2022. The bulk of 2022’s breeding chicken imports came from the United States, with Canada and France being the other two sources.

Meanwhile, in 2022, Taiwan imported a total worth of USD 4.9 million of bird eggs (HS Code 0407), up 141% YoY compared to 2021. The largest origins were Japan, the United States and Australia. In January 2023, Taiwan only imported a total worth of USD 32 thousand, down 79% compared to the same month in 2022. YoY growth is expected to return and at a double or triple-digit pace in the upcoming months. In the meantime, in 2022, Taiwan imported a value of USD 2.6 million of egg products (HS Code 0408), down 21% YoY. However, in January 2023, it imported USD 326 thousand, up by 55% compared to the same month in 2022. The largest origins in 2022 were the United States and India.

Source: Tridge and Taiwan Customs

Local reports mentioned that Taiwan was looking to further diversify its import origins for chicken eggs to include Brazil, Philippines, Thailand and Turkey.

The ongoing domestic low supply in chicken meat and egg production will continue to pressure prices up, as imported products include costs which hike up the price. In addition, as extensively reported by Tridge, global poultry and egg supply are facing disruptions mostly as a result of avian influenza, which are pressuring prices up throughout the world. So, in addition to the logistical costs behind the higher price of imported products, a higher global chicken meat and egg price will also be reflected in Taiwanese domestic wholesale price of these products.