Focus on Milk & Eggs [eggs]
With a focus on the major commodities markets as a buying strategy, the egg market has seen a...
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We look at the commodities markets globally to help predict buying strategies, we're putting a focus on dairy, milk and eggs. For eggs specifically, in the EU in 2022 and 2023 production revised downwards.
- The egg market continues to be characterised by a substantial supply shortage and prices at record levels.
- There are two main factors in the EU that continue to encourage slaughtering in favour of stock replacement:
- Avian flu outbreaks throughout the year, which have affected (and still affect) the whole of Europe.
- Production input costs: feed prices continue to rise, partly due to the heavy drought in the European Union. Energy prices also continue to support the market.
- According to the European Commission, total egg production for 2022 is projected at -2.3% compared to 2021, down for the second year in a row. Previous projections for egg production for 2022 and 2023 consumption have been revised downwards.
- Demand, already seasonally buoyant, shows a good level of rigidity, with eggs being one of the cheapest noble proteins, despite inflation and limited economic growth.
- In the short term, the situation of limited supply and sustained demand will keep prices at record levels. During the early months of 2023, the seasonality of consumption and production will begin to reverse, transmitting declines to prices that will, however, remain in line with those of 2022.
To read the full February 2023 Commodities Bulletin register here: