Weekly Product Updates

W14 Chicken Egg Update: Egg Prices Increase in the US but Drop in Brazil and Russia

Chicken Egg
Russia
Published Apr 12, 2024
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In W14 in the chicken egg landscape, US egg prices are rising due to ongoing avian flu outbreaks affecting poultry farms. In Brazil, egg prices declined at the end of Mar-24 due to oversupply and reduced consumer purchasing power. Conversely, egg production in Russia saw a 1.8% decrease in the first two months of 2024 compared to the same period in 2023. Despite these declines, efforts are in place to ensure sufficient production to meet demand.

Avian Influenza Outbreak in the US Leads Increase in Egg Prices

Egg prices in the United States (US) have been steadily rising for months and are expected to increase further due to avian flu outbreaks affecting poultry farms. According to the latest US Consumer Price Index, Grade A egg prices averaged USD 3 per dozen in Feb-24, a notable increase from USD 2 in Jan-24 and marking the highest level since Apr-23, though still lower than the record high of USD 4.82 recorded in Jan-23.

This surge is attributed to the widespread avian flu outbreak in the US, which has significantly impacted the poultry industry. For example, it temporarily halted production in one of Cal-Maine Foods' facilities in Texas, following the culling of approximately 1.6 million hens and 227 thousand chicks earlier in W14 due to positive avian influenza tests. Other farms across the US, including those in Michigan, Texas, Kansas, and Minnesota, have also reported cases of the disease. This situation has raised concerns about the industry's ability to meet demand amidst the outbreak, with a high likelihood of further price increases if production fails to keep pace with demand due to avian flu-related challenges.

Egg Prices Drop at the End of Mar-24

The Center for Advanced Studies on Applied Economics (CEPEA) indicates a decline in eggprices across most monitored regions in Brazil at the end of Mar-24. This drop is attributed to an oversupply of eggs compounded by reduced consumer purchasing power and greater availability of alternative protein sources. Market players were disappointed by this downward trend, particularly during the Easter holiday, usually characterized by heightened egg demand. However, despite recent devaluations, the price hikes observed in the preceding weeks ensured a rise in the Mar-24 average compared to the Feb-24 average.

Egg Production and Prices have Dropped in Russia in 2024

According to Rosstat data, egg production in Russia totaled 7 billion pieces in the first two months of 2024, a 1.8% decrease compared to the same period in 2023. Feb-24 witnessed a notable decline of 9.2% in egg output compared to Jan-24. Despite this decrease, the Ministry of Agriculture recently reassured that egg production volumes during the January to February period will adequately meet demand, with efforts underway to ensure the continuous operation of poultry farms. Rosstat also reported that egg prices surged by 61.35% in 2023, but since the beginning of 2024, they have decreased by 4.4%.

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