Based on recent reports, New Zealand’s egg industry is showing signs of recovery from the shortages experienced earlier in the year. The egg supply issue was primarily due to a combination of factors, including the ban on battery-caged hens, which led to a decrease in hen populations and subsequently reduced egg production. This situation resulted in eggs being in short supply and their prices reaching historic highs.
However, the layer hen population has shown growth from 3.4 million in February to 3.8 million, with an expectation of an additional 100,000 hens by January. This increase in hen numbers is expected to lead to more eggs being available in the market at lower prices, according to OneNews.
The shortage and high prices have been tough on both consumers and farmers. The cost of transitioning from traditional cages to colony cages or free-range systems has been substantial for farmers, with investments sometimes exceeding $1 million. Additionally, the egg industry has been affected by rising grain costs, which constitute a significant portion of the cost of egg production.
As of June 2023, the average cost of a dozen eggs in New Zealand was reported to be $8.58, a significant increase from the previous year. The high prices were driven by a 12.1 percent annual increase in food prices, with egg prices being a major contributor. However, with the recovery in hen populations and egg production, there is hope that egg prices will descend, offering relief to consumers, OneNews reports.
Reports have also drawn attention to the effectiveness of The Warehouse Group’s inventive strategy, presenting a dozen of the renowned Farmer Brown branded eggs at an attractive rate of $5, a move that has received notable endorsement from consumers. In contrast, Farmer Brown eggs are presently advertised at $8.39 on the websites of Countdown and New World, while Pak’nSave displays them at $7.59, as reported by NZHerald.
This recovery in the egg industry is a positive sign, indicating the potential for more affordable egg prices in the near future.