W17: Chicken Egg Update

Published May 4, 2023
In W17, in the chicken egg landscape, the animal welfare suggestions outlined in the most recent study by the European Food Safety Authority (EFSA) will significantly negatively impact chicken and table egg producers in the European Union, including Hungary, if adopted According to industry stakeholders, the EFSA recommendations only take into account animal welfare aspects but do not take into account the serious environmental, economic and social consequences, especially on producers. British free-range eggs will soon be back on supermarket shelves because the risk of bird flu has diminished enough. Egg producers had already started gradually letting their free-range birds roam outside again from 18 April, but are continuing to maintain high levels of biosecurity. However, in Uruguay in W17 agriculture, livestock, and fisheries minister Fernando Mattos announced that the country will begin mandatory vaccination of all laying hens in commercial farms after ten outbreaks of avian influenza among wild birds in conservation areas.

Egg production and packaging in South Africa have been significantly impacted by rising production costs, especially the pressure added to energy expenses as a result of Eskom's 18.5% rate rise in April, as well as load-shedding. The South African Poultry Association (Sapa) reports that the variable costs to produce an egg, including electricity, fuels, and feed, have increased from 70% to 80% in a span of a few months. Resultantly, the day-old pullets hatched are expected to decline by 35%, and the point of lay hens replacement is also expected to be 11% lower. Due to Eid Al-Fitr, the cost of chicken eggs in Indonesia increased to USD 2.04/kg in W17. The price increase was due to a shortage of stock, plus transportation costs which had doubled due to Eid. Prices are expected to return to normal once Eid is over. In Q1 2023, chicken output in Vietnam expanded steadily, with the expected amount of eggs at 4.7B, an increase of 4.5% YoY from 2022. Lastly, production in Seychelles has increased steadily over the past ten years to an estimated 184,763 birds in April with a daily average production of 2.4 million eggs. However, hot weather patterns from March to May can cause production to drop 10-15% in farms with standard management for open house systems, causing a shortage in the market. This can result in an increase in the price of eggs on the local market as has been the case for the past few weeks from USD 0.19 per egg to around USD 0.30 at the shopping outlets.

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