In W31 in the chicken egg landscape, egg production in Brazil has achieved positive results so far, and the estimate by the National Supply Company (Conab) indicates a new record for 2023 with 40 billion units for consumption. However, despite this positive outcome, challenges persist in the laying poultry sector due to high production costs leading to the disposal of laying hens. The sector also faces the impact of Avian Influenza outbreaks in various countries, including the US, which has disrupted foreign market prices and posed difficulties for Brazilian egg exporters.
Exports of Ukrainian eggs to Europe surged from a few hundred metric tons (mt) per month to 5 thousand mt between Jul-22 and Apr-23. The exemption of customs duty on poultry meat and eggs from Ukraine to Europe, aimed at supporting Ukraine during its conflict, led to this increase. Despite industry concerns, the renewal of this agreement on June 6 further intensified opposition. The French poultry sector sees this as detrimental to food sovereignty and the industry, compounded by bird flu and free trade agreements with Mercosur. Ukraine's low production costs amplify its competitive edge in the European market.
Japan has agreed to regionalize the Brazilian protocol for poultry exports. Despite Brazil's overall IAAP-free status, recent avian flu outbreaks in states like Espírito Santo and Santa Catarina led Japan to halt imports from these regions temporarily. Following discussions, the restriction will now apply only at the municipal level, allowing chicken meat and egg exports from municipalities without avian flu outbreaks.
Lastly, China's national egg-feed price ratio stood at 2.84, an increase of 8.81% month-on-month (MoM). The limited supply of large-size eggs in production areas, coupled with improving market demand, led to an increase in egg prices during the week.
