Egg Prices to Reach Record High in 2023 Globally

Consumer Goods

According to research, global egg prices are expected to remain at an all-time high until the end of the year. In a report, Rabobank, a Dutch investment bank, said that the historic levels were caused by bird flu and the rising cost of feed.

The FAO Food Price Index, which has been steadily declining ever since Russia invaded Ukraine, is roughly followed by egg prices. RaboResearch, the bank’s research arm, says that eggs will cost more than twice as much in the first quarter of 2023 as they did in the previous year.

According to Nan-Dirk Mulder, a senior analyst at Rabobank, the global egg price monitor reached a new record in the first quarter of 2023, with the index now peaking above 250. Prices are also significantly influenced by high feed costs. According to Mulder, since feed costs account for between 60% and 70% of a layer farmer’s expenses, any fluctuation or uncertainty in feed costs has an impact on egg supply and prices.

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Additionally, the outlook is unchanged for the remainder of the year, particularly for nations that are still battling avian influenza. According to the report, the rapid spread of AI in Latin America, for instance, has had a significant impact, causing price spikes in the countries most affected by outbreaks.

Mulder gave examples of peak egg prices that were followed by similar price drops one to two years later. He stated that producers’ responses to periods of higher margins typically result in this. In order to take advantage of higher prices, they typically raise the number of hens, which results in an oversupply.

Sandy

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