Home > News > CnAgri insight > Article

Profit of egg dealers has been compressed, so they face the test of transformation and upgrading

China Agriculture Report By CnAgri2017-07-24 14:45:27China Agriculture Report Print
  In the first half of 2017, egg prices have been decreasing and layer breeding has suffered a loss for up to 20 weeks. Due to transparent egg prices, the profit margin of egg dealers has been compressed continuously, so dealers without advantages in egg sources, capital and channels also face the risk of being eliminated.
  (1) Unstable egg source will lead to unsmooth supply of eggs: if traders didn’t keep close cooperation with farmers and lowered purchase price when egg prices decline, farmers will choose to cooperate with other dealers when the prices go up.
  (2) Financial strain will lead to the situation of supply shortage: when egg prices are high, sales on account between upstream and downstream traders can be shared by farmers to temporarily relieve their capital pressure. When breeding profit is low, farmers ask for cash for all transaction, so if your capital strength is week, you will face the situation of supply shortage which will lead to customer loss.
  (3) Quality and service are the key for developing channels: egg dealers need develop channels through quality and service advantages and maintain long-term cooperation with customers.
  In a word, scale breeding of layers has become an inevitable trend, internet is broking information barrier gradually, and egg distributors also make good preparation for transformation and upgrading.

Explore Realted News »
Explore Realted Reports »