The bird flu epidemic and the increase in feed costs will cause egg prices in the United States, Japan and Taiwan to rise in 2022.
(Reuters file photo)
U.S. egg prices hit new high of $13.50 per egg after Thanksgiving
[Financial Channel/Comprehensive Report] Affected by the war in Ukraine, the price of corn and other feeds has risen, coupled with the impact of factors such as the raging bird flu, egg prices in the United States, Japan and Taiwan will all hit record highs in 2022.
According to data from market research company Urner Barry, the wholesale price of large (L) eggs in the Midwest of the United States will rise to US$5.36/dozen (approximately NT$162) in December 2022, with an average of approximately NT$13.5 per egg. The price in the same period of the previous year (2021) was about US$1.70 (about NT$51, with an average of 4.25 yuan per tablet), an increase of 215%.
Urner Barry editor Karyn Rispoli said egg prices have hit record highs since the week of Thanksgiving.
The price of retail eggs has risen far more than any other commodity in the supermarket, rising by more than 30% from January to early December 2022.
Egg prices have risen more than overall food and beverage prices, putting pressure on U.S. households’ pocketbooks.
Egg prices rose 49.1% in November 2022 from a year earlier, the largest increase of any grocery item, according to the Bureau of Labor Statistics.
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Bird flu is rampant and will kill approximately 57.8 million poultry in the United States in 2022.
(Associated Press file photo)
4,300 laying hens in the U.S. will die from bird flu in 2022
Around February 2022, a large-scale outbreak of bird flu broke out in the United States, and this wave of epidemics continued throughout the year.
The last time there was a large-scale outbreak of bird flu in the United States was in 2015, but that outbreak was brought under control in June of the same year.
According to data from the U.S. Department of Agriculture as of December 28, about 57.8 million poultry, including chickens, turkeys, and ducks, will die due to bird flu in 2022, including more than 43 million laying hens.
CoBank economist Brian Earnest said 2022 saw a full-year decline in flocks and expects to continue to see this in 2023 and will see tighter supply and a higher pricing environment continue downwards .
There were about 375 million laying hens in the U.S. as of Dec. 1, down 5% from 2021 levels, according to the U.S. Department of Agriculture.
Egg production has also declined at the same time. According to data released by the US Department of Agriculture on December 20, about 8.9 billion eggs were produced in the United States in November, down from 9.7 billion in December 2021.
Emily Metz, chief executive of the American Egg Board, said tight supplies were not the only factor driving egg prices higher, noting that higher fuel, feed and other production costs were also driving up wholesale costs. .
Then there's demand for eggs, which typically spikes towards the end of the year.
During the holidays at the end of the year, the American people's demand for baking and cooking increased, which further pushed up the price of eggs.
Ernest noted that because of these habits, wholesale egg prices tend to increase during the winter, which brings about strong market conditions.
Year-round demand for eggs has also been strong, with retail egg sales slipping only about 2 percent in the year ended Dec. 4, according to market research firm IRI, even as prices soared.
Wholesale egg prices in Japan, which have been stable for a long time, have continued to rise amid an outbreak of bird flu coupled with soaring feed costs.
(Bloomberg file photo)
The average price of an egg in Japan is 5.3 yuan, which is a historical high
Since the end of October 2022 in Japan, farms have been attacked by bird flu. The epidemic is breaking out in various places and spreading at an extremely fast speed. As of January 3, there have been 54 outbreaks of bird flu in Japan, the highest number in history.
The number of poultry culled in a single season has reached about 7.75 million. If the epidemic continues to spread, the total number may exceed the 9.87 million culled in 2020-2021.
Wholesale egg prices in Japan, long stable, are soaring amid an outbreak of bird flu coupled with soaring chicken feed costs.
According to data from the main seller JA Quannong Eggs, the average wholesale price of medium (M) eggs in Tokyo in December 2022 will be 284 yen (approximately NT$66) per kilogram, an increase of 74 yen (approximately NT$17) from the same period in 2021. , which is also the highest since statistics were released in 1993.
Japan's Ministry of Agriculture, Forestry and Fisheries said shipments were also down due to the Russian invasion of Ukraine, a spike in feed prices such as corn for eggs, and the spread of bird flu.
The Ministry of Agriculture, Forestry and Fisheries also mentioned that the wholesale price of eggs usually shows a downward trend when demand stabilizes at the beginning of the year, but due to the soaring feed price and the continued impact of bird flu, the future situation is still difficult to predict.
Many supermarkets in Japan have also raised the retail price of eggs successively in December, and the increase ranges from 10-20 yen (about NT$2-4) per box of 10 eggs.
Akidai, a chain supermarket in Tokyo, raised the price of each box of eggs to more than 230 yen (about NT$53), with an average of about NT$5.3 per egg.
According to statistics, the price of retail eggs in the United States has risen far more than any other commodity in supermarkets in recent months. From January to early December 2022, it will rise by more than 30%.
(AFP file photo)
Egg prices in Taiwan are higher than those in Japan
In 2022, Taiwan is also facing the problem of soaring egg prices. Since January, the price of eggs has been rising steadily. The wholesale price rose from 44 yuan per catty to 52 yuan in July, setting a record high.
According to the daily egg price announced by the Council of Agriculture, the Taipei Egg Merchants Association and chicken farm representatives, the wholesale price of eggs on January 3, 2023 is 50 yuan per catty, and the price of 10 eggs in a CAS medium plate is 64 yuan. Yuan, about NT$6.4 per piece on average.
The main reason for the increase in egg prices in Taiwan in the past year was the high price of feed. Chen Jizhong, chairman of the Council of Agriculture, also said in an interview earlier that the price of feed will not continue to rise and has gradually stabilized. He stressed that he will do everything possible Stabilize the price of eggs.
With the Spring Festival approaching, Chen Jizhong expressed confidence that the supply of eggs will be safe. As for the price of eggs, it will return to market supply and demand.
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