Since February this year, the price of eggs has continued to fall, and the price in some areas has fallen to about 3 yuan per catty, compared with the same period last year, the decline has been more than two percent. How does this affect layer farming?
Egg prices have entered the "ternary area" and laying hen breeding has fallen below the cost line
Zhai Zhanwei is a layer farmer in Zouping, Shandong Province, and his farm has about 150,000 laying hens, an increase of nearly 70,000 compared with last year, and now the daily egg output is about 15,000 catties. Although the current daily egg production has increased a lot compared with the same period last year, Zhai Zhanwei is not happy, because the price of eggs has dropped significantly this year.
Shandong Zouping layer farmer Zhai Zhanwei: The price of eggs has been maintained to about 3.3 yuan per catty in recent times, and in April last year, the price has been around 4.5 yuan and 4.7 yuan per catty.
According to farmers, the current feed cost of laying hens is about 3.1 yuan / catty, and then counting the cost of brooding, labor costs and fixed asset costs, now every catty of eggs sold will be lost, which also allows them to speed up the elimination of old chickens with a declining egg production rate.
Shandong Zouping layer farmer Zhai Zhanwei: We are still losing money, and we are losing 0.2 yuan and 0.3 yuan per pound of eggs sold.
It is understood that since February this year, the price of eggs has shown a downward trend, the daily average price of eggs in the country from about 4 yuan / kg in early February, down to the current 3.3 yuan / catty, a decline of 17.2%, and compared with the same period last year, the decline reached 27.3%.
The supply of eggs is sufficient, the downstream demand is weak, and traders are cautious in purchasing
The continued downturn in egg prices is due to the high inventory of laying hens and the sufficient supply of eggs on the one hand, and the weak demand for eggs on the other hand. Many egg traders have reduced their purchases and are cautious about replenishing stocks.
In an egg warehouse in Zouping, Shandong, trader Sun Mengmeng is inspecting the eggs that have just been collected, and he told reporters that he now buys about 240,000 catties of eggs a day, which is a significant decrease compared with the same period last year.
Sun Mengmeng, an egg trader in Zouping, Shandong: The purchase volume has decreased by a quarter compared with previous years, and now the daily sales volume of eggs has decreased more than the same period last year, at about one-third. Originally, it was possible to send a truckload of goods in one to two days, but now it has been changed to three to five days to send a truckload of goods.
Sun Mengmeng told reporters that due to the weakening of downstream demand, although they have reduced the amount of purchases, their inventory has increased, and their inventory is currently around 350,000 catties, which is the highest level in recent months, an increase of more than 25% compared with the same period last year.
Sun Mengmeng, an egg trader in Zouping, Shandong: The main feeling is that the people's demand for eggs is relatively low, including food processing, and the purchase of eggs is also relatively low.
Industry insiders pointed out that the supply of eggs has increased compared with previous years, and the data shows that as of the end of March 2024, the number of laying hens in the country reached 1.233 billion, a year-on-year increase of nearly 4%, a high level in the past three years. At present, eggs are in the off-season of demand, and downstream traders and food companies dare not stock up because of caution, resulting in weak demand performance.
Liu Xu, egg analyst of Zhuochuang Information: May to June is in the off-season of egg consumption, and the holiday effect has a relatively limited effect on the demand for eggs. Therefore, it is expected that in the coming period, the national egg price will remain at a low level of adjustment, and the price will have a slight downward trend in mid-to-late June.
Source丨CCTV Finance