Why egg prices declined sharply recently?

By CnAgri 2019-12-10 13:51:14 Print Tel:861064402118-822 Email: chen.wang@boabc.com

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According to the monitoring data of BOABC, the prices of eggs and eliminated layers have begun to decline since the begin of November, and fell to CNY8.32/kg and CNY13.48/kg, which respectively decreased by 23.58% and 40.70% from the beginning of November. Why egg prices declined sharply recently? There are several main reasons as follows:
On the one hand, it’s a result of decreased meat prices. The central and local governments have unveiled policies to boost hog production and stabilize pork prices. Since the beginning of November, the policy effects have been showing up, pork prices declined, which brought down the prices of chicken, beef, and mutton. Eggs, an important alternative of pork, its prices also decreased with the decline of pork prices.
On the other hand, players in egg industrial chain all cut egg inventory. With the decline of egg prices, distributors, retailers, and food processing enterprises all actively were clearing or reducing stocks. The decrease in purchase quantities in each link boosted the drop of egg prices.
BOABC thinks that the recent egg prices have bottomed out and will rebound later.
First, egg consumption will usher in a busy season. It’s a peak consumption season for eggs from the beginning of December to the Spring Festival. Besides, egg distributors are optimistic on egg prices and will store more eggs, resulting in an increase in egg prices. But the growth is limited, and the price will not exceed the highest level at the end of October.
Second, the price of eliminated layers started to rebound. Eliminated bird prices rebounded slightly at the end of November, and more layers will be eliminated in middle December. Increased difficulty in layer rearing in winter, lower egg-laying rate, and tighter supply of eggs will stimulate egg prices. 

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