Reduced supply, recovering consumer demand push egg prices up sharply

At the Southern wholesale market ( Hanoi ), on the morning of August 9, the price of chicken eggs (Egyptian eggs) was sold by traders at 3,500 VND/egg; the price of red chicken eggs was 3,000 VND/egg; the price of duck eggs was 3,300 VND/egg.

People buy chicken eggs at the Southern wholesale market (Hanoi). Photo: Nguyen Hanh

Ms. Hoa, a trader at a wholesale market in the South, said that the price of chicken eggs has been increasing for more than a month now. It has gradually increased from 2,600 VND/egg to 2,800 VND/egg and now to 3,500 VND/egg. The reason is that it is the season of making moon cakes. On the other hand, at the end of last year and the beginning of this year, the price of chicken eggs dropped sharply, so many farms abandoned their cages. At this time, the output on the market has decreased, pushing the price of eggs up.

Not only in the southern wholesale market, but also in the traditional markets in Hanoi, the price of chicken eggs is also slightly higher and is commonly around 3,600 VND/egg. Specializing in wholesale and retail at Kim Lien market, Ms. Minh Lan, a trader at this market, said that the price of eggs has increased for more than a month now, but because she mainly sells to regular customers, even though the purchase price is high, the selling price only increases slightly. Instead of buying a lot, Ms. Minh Lan now only sells enough to sell to those in need.

The high price of chicken eggs at this time brings quite high profits to farm owners. Because the current price of chicken eggs is around 1,500 - 1,600 VND/egg, while the wholesale price of eggs at the farm is sometimes around 3,000 VND/egg. This price helps many farms make up for the losses in the first period of the year, when the price of eggs dropped to 1,300 - 1,400 VND/egg.

Mr. Vu Van Yen, owner of an egg farm in Hai Phong City, said that wholesale egg prices at the farm have increased sharply in about a month. Currently, the price of eggs at the farm is being sold at 2,700 - 2,800 VND/egg, with this price, his farm earns about 1,000 VND/egg. However, for households that have signed output contracts in advance, the price of eggs at the farm has not fluctuated much.

On the business side, Ms. Chu Thi Hong Thuy, Vice President & CEO of TAFA GROUP, said that the sharp increase in egg prices comes from three main reasons. First, supply has decreased because after the period of low prices in 2024, many farms were forced to reduce their scale or temporarily stop production. Second, exchange rate fluctuations increased by 8-10%. Third, demand has recovered. Accordingly, domestic consumption demand and exports to Cambodia, Laos, and the Middle East are increasing again.

Notably, the average egg price in the first 6 months of the year in Vietnam is still lower than the general level in Southeast Asia and many countries in the world , creating a clear competitive advantage for the industry.

What is the prediction for egg prices in the coming time?

Ms. Chu Thi Hong Thuy commented that in the coming time, egg prices will remain higher than at the beginning of the year but relatively stable, and may be adjusted downward or sideways. Therefore, businesses need to simultaneously take advantage of price advantages and apply technology to increase international competitiveness. Take advantage of Vietnam's price advantages to expand export market share. Improve profit margins to upgrade technology.

Speaking to reporters from the Industry and Trade Newspaper, Mr. Nguyen Thanh Son, Chairman of the Vietnam Poultry Association, said that increased demand and decreased supply were factors that pushed egg prices up over the past month. In addition, African swine fever has caused consumers to reduce their consumption of pork and switch to consuming poultry meat, poultry eggs and seafood, contributing to the increase in egg prices.

However, at some farms, the wholesale price of chicken eggs has tended to decrease slightly to around 2,400 - 2,500 VND/egg instead of the previous level of 2,800 - 2,900 VND/egg. He also said that the price of 2,000 - 2,800 VND/egg is reasonable, consistent with the real value of the egg and the current production cost.

Commenting on the market in the coming time, Mr. Son said that egg prices will not be stable forever, and may drop after 5-6 months. Because egg prices are increasing and farmers are starting to make a profit, some farmers are starting to restock quite a lot. However, if restocking is not controlled, it is easy to repeat the story of supply exceeding demand, and egg prices falling again. Therefore, farmers, especially small-scale farmers, need to be very careful.

Regarding this, Ms. Chu Thi Hong Thuy said that in order for the egg industry to develop sustainably, it is necessary to build four strategic pillars. First, accurate data and forecasts. The application of Big Data and AI to balance output, avoiding the situation of "good harvest, low price". Second, promoting value chain linkage. Enterprises, farmers and distributors cooperate long-term to share benefits and risks. Third, standardizing quality. Applying international standards, transparent traceability to maintain reputation and expand exports. Fourth, innovating products and markets. Accordingly, reducing dependence on fresh eggs, expanding products to compete globally.

“In addition to deploying production technology to help increase productivity and reduce costs; streamlining supply chains to optimize all logistics costs; developing value-added products such as organic eggs, functional eggs, etc. is also a solution to help increase product value while still maintaining competitive prices,” said Ms. Thuy.

According to the Department of Animal Husbandry and Veterinary Medicine (Ministry of Agriculture and Environment), in 2024, the total poultry herd in the country reached 584.4 million, the highest level in many years, up 3.3% over the same period. Poultry meat output reached 2.46 million tons (up 6.9%), egg output reached 20.352 billion eggs (up 5.1%), including 13.516 billion chicken eggs and 6.913 billion waterfowl eggs. Vietnam currently ranks 10th in the world in terms of chicken flocks and 2nd in the world in terms of waterfowl flocks.

According to baocongthuong.vn

Source: https://huengaynay.vn/kinh-te/gia-trung-tang-20-30-nhung-tiem-an-nguy-co-giam-soc-156561.html