Egg Prices Explained
Egg prices show uneven trends across the global market as diseases, supply, and demand trends vary differently. In the U.S., the price dipped by 3.65% since the beginning of 2024. Also, weak consumption in China led to a domestic price decrease.
On the other side of the world, Indian eggs rise sharply due to declining production. The country’s egg rates spiked up to $0.08 per piece. Furthermore, local eggs in the Russian market soared by more than 40%, 3 days before 2024. As a result, the government took urgent measures to stabilize the prices.
Why are egg prices fluctuating?
Egg price movement relies heavily on various factors. Listed below are the current and recurring top reasons for its value variation.
1. Seasonal Changes
Throughout the year, egg prices vary according to seasons, supply, and demand. Generally, egg production is low in winter months due to shorter days. Thus, demand is high which causes its price hike.
Conversely, reasonable prices are common in the late spring and early summer months due to warm weather and longer days that increase egg production.
2. Production Costs
Generally, labor, feed, transportation, and enriched cages shape the cost of egg prices in the U.S. Additionally, producers’ profitability and productivity also depend on production costs.
3. Consumer Demand
The rise of fad diets greatly plays a big impact on egg prices. Usually, consumers who are fans of low-carb or high-protein diets tend to increase their egg demand as part of their meal routine.
4. Disease Outbreaks
Normally, salmonella, avian influenza, and other disease outbreaks are big players in egg prices.
Additionally, these frequent breakouts push the international trading market to tighten its trading law under health and safety protocols. Thus, making exportation and importation even more difficult which lead to the egg price increase.
5. International Trade
The rule of importation and exportation.
Production shortages from top egg export countries will possibly lessen their international trade to suffice their internal demand. Therefore, this impacts the steady flow of exportation and importation which eventually reflects on egg prices in the market.
Overall, egg production, demand, and price thread along the lines of people’s consumption, season, and frequent disease outbreaks.
Which variables impact the price of eggs?
- Seasonal Changes
- Production Costs
- Consumer Demand
- Disease Outbreaks
- International Trade
Where does the egg come from?
Presently, our favorite breakfast meal comes from the top producers with China claiming the top spot with its yearly 500 billion egg production. The United States, India, Mexico, and Indonesia follow distantly.
Additionally, trading eggs internationally started in the early 20th century after the development of refrigerated ships and airplanes.
Furthermore, the first export was in 1906 when the U.S. sent relatively small quantities of eggs to the UK. Ultimately, this started the import-export activity in the global food industry. Eggs come from various sources:
1. Commercial Egg Farms are the largest source of eggs worldwide. Generally, these are large-scale farm operators who use modern technologies and techniques to raise chickens and produce eggs.
2. Backyard Flocks. These are small-scale poultry operators and are mostly managed by individuals or families for personal use. This practice is famous nowadays as people are looking for more sustainable food practices.
3. Specialty Farms. Generally, these farms specialize in producing unique egg qualities in terms of size, color, or nutrition. Egg produce from specialty farms are:
1. Organic eggs
2. Free-range eggs
3. Cage-free eggs
4. Omega-3 rich eggs
5. Brown eggs
What is the future price of eggs?
The future of egg prices is likely to go high in the coming years. Here are the top driving factors for this:
1. Recurring Avian Influenza
The recurring Avian influenza disease will always restrict egg production from an infected country. Thus it drives prices in the global market because of low supply.
2. Growing Demand from Emerging Markets
The rising disposable income and urbanization of China and India will likely contribute to egg price hikes as these two countries are already top as the biggest consumers of eggs.
3. Changing Weather
Freezing and hot weather temperatures determine egg value in the market as the quality and availability of feed depend on fair weather.
4. Diet Dynamics
People’s diet also plays an important part in egg demand and prices in the market. As everyone wants to stay fit, their diet list and purchasing attitude change.
The main customers and consumers of all products and services. The population in 2030 is expected to be 8.6 billion according to the United Nations report.
Overall, these combined current factors will drive egg production to 30.5 billion in 2030 with an average egg price of $3.50 per tray. This of course is subject to changes according to internal and external factors.