Prices for shell eggs have seen a rapid increase since February with wholesalers struggling to secure long-term availability of product.
Eggs are a staple food for many people worldwide, and their price is an important indicator of overall food inflation. However, in recent years, prices for eggs have been impacted by significant outbreaks of avian influenza and salmonella in several key producing countries. The diseases have forced farmers to destroy eggs and cull egg-laying hens, taking a substantial portion of the supply out of the market.
Producers are also facing significantly higher input costs in 2022 due to the rising cost of feed, which makes up approximately 60-70% of the total production cost. Feed prices have risen sharply since Russia invaded Ukraine, as the region is a leading producer of core components such as maize and soya bean cake. And the ongoing conflict has severely disrupted supplies of these ingredients, leading to higher prices for feed manufacturers and, ultimately, producers of eggs.