Egg demand rises in NZ due to a national hen shortage. 

January 22, 2023

According to the recent Consumer Price Index, the cost of eggs increased 59.9% a year in December. The CPI also showed an 11.1% increase in prices from November to December. A dozen big eggs cost an average of $5.17 in the Midwest last week, compared to about $1.50 in January 2022 and 94 cents in 2021.

A virulent strain of avian flu has caused the deaths of roughly 58 million hens since early 2022, according to the US Department of Agriculture. The majority of the birds culled to end the outbreak were egg-laying hens, leading egg prices to soar and availability to decrease. Inflation, labour shortages, supply chain concerns, and avian flu have all contributed to rising egg prices. The increase in egg prices is also affecting egg-based products such as bread, cake, and salad dressing.

Due to a nationwide shortage, Manawatu egg producers are struggling to keep up with the increased demand for eggs. Because the usage of caged chickens was phased out on January 1, laying counts decreased. According to the Egg Producers Federation, there is a shortage of 300,000 hens. Earlier this month, there were reports of empty grocery shelves, and some stores imposed a temporary limit on the number of eggs that could be purchased.

Pip Chrystall and Brian Kennerley founded The Egg Project in Himatangi in 2019. All of their eggs are free-range, and around 40% are organic. Chrystall stated that after the law changed, there has been a significant increase in demand for eggs.

The Egg Project, which has approximately 27,000 chickens, serves 3500 consumers in Manawatu, Rangitikei, and Whanganui. It also sells eggs to schools, early childhood centers, and community groups for fundraising purposes, with the organization receiving $1 for every dozen eggs delivered.

NZ Egg Group’s operations director, Nick Bennik, has roughly 200,000 hens in lay, with two-thirds of them in Horowhenua. They sell free-range and cage-free eggs. They don’t have enough to meet demand and they have a large number of back orders to try to fill. While demand had increased across the board, Bennik said it wasn’t solely due to the change in cage restrictions, with smaller enterprises exiting the market and an increase in the cost of products such as grain also having an impact. He stated that there had been a 40% cost rise and that it would take time for supply to increase to meet demand.

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