Weekly Product Updates

W32: Chicken Egg Update

Chicken Egg
China
Ukraine
Published Aug 16, 2023
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In W32 in the chicken-egg landscape, in the first half of 2023, the export volume for Brazilian shell and processed eggs grew by 150% year-on-year (YoY), totaling 16,600 metric tons (mt). In terms of value, there was a remarkable increase of over 222% YoY, reaching USD 41.2 million. Notably, Jun-23 alone witnessed a surge of 901% in volume and a 608% increase in value compared to the previous year. Japan, which had a significant reduction in the flock of laying hens due to avian flu and the consequent shortage of eggs, has been the main destination for Brazilian exports, purchasing 6.9 thousand mt from Jan-23 to Jun-23, a 1,304% YoY increase. Taiwan followed by importing 5.4 thousand mt after a year of no imports.

In Turkey, chicken egg production saw a 3.7% month-on-month (MoM) decline in June, dropping from 1.64 billion units in May to 1.58 billion units. Similarly, in Chile, egg production in Jun-23 experienced a 2.2% MoM decrease, going from 337.90 million units to 330.54 million units. This drop was primarily due to lower white egg production, down by 1.8% (equivalent to 4.26 million units), and colored egg production, which decreased by 3.0% (equivalent to 3.10 million units). Additionally, the Metropolitan Region accounted for 40.8% of the national egg total, producing 134.88 million units. The Valparaíso Region followed with a 16% share and a production of 52.86 million units, and the Ñuble Region held a 10% share with a production of 33.04 million units.

Ukraine acknowledges localized Newcastle disease in certain Polish regions. Nevertheless, Ukraine allows imports of chicken products from both disease-free regions and those properly processed. The Ministry of Agriculture and Rural Development of Poland was informed of this decision by Ukraine's State Production and Consumer Service on August 4. However, details about lifting the ban on chicken and egg imports from Poland into Ukraine are unavailable. Currently, the prohibition on importing hatching eggs, live poultry, and unprocessed poultry products is lifted, except in areas affected by the Newcastle disease, as determined by Poland's competent authority.

In South Korea, egg-laying hen exports to Vietnam, which accounted for 70-80% of the total, have been halted due to stricter quarantine measures by Vietnamese authorities on incoming goods from South Korea and Brazil. This suspension has created challenges for laying hen farmers, leading to declining egg prices and disruption of export pathways. Additionally, starting September 1, 2024, laying hen farms will be required to increase the breeding area by 50%, from 0.05㎡ to 0.075㎡ per chicken. This expansion is difficult in practice, forcing many farms to reduce their animal numbers, which is projected to decrease egg production by approximately 40%.

Lastly, China's national egg-feed price ratio stood at 2.93, an increase of 3.17% MoM. The market circulation has accelerated, and the egg price has risen this week. Limited egg supply, coupled with improving market demand, increased egg prices during the week.

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