Analysis Insights
Egg market remains tight, but takes a break
The egg market is in calmer waters after significant increases. Dutch prices have slightly increased, while German prices have been stagnant in recent weeks. Prices are now at the same level. In Germany, the industrial demand is currently low, but there is already speculation about a new increase.
The rise in egg prices has flattened somewhat, but the price is still above the level of the record year 2022. Additionally, the difference between the years is increasing. The price of 100 free-range eggs size M is €15.20 this week. That is over €1 more than in 2022. In that year, the price of eggs actually decreased slightly during the same period.
The demand for eggs remains consistently high, as heard in the market. This is especially true for consumer demand. However, the egg market has already taken a proactive approach in recent weeks, so price increases are not as steep now. In addition, the egg sector has been successful. The high price levels are holding steady for now.
The industry, however, is not yet convinced that the current price level will hold. The processing sector is cautious at the moment and speculates that prices could still drop slightly. So far, the decline has not materialized. This could be an indication that prices will rise again when the industry starts buying again.
German price stagnates
The lower industrial demand is particularly evident in our neighboring country. In the German market, it is reported that industry orders are very inconsistent. However, a pattern is visible. At the beginning of the week, relatively few orders are placed, while later in the week, significant quantities are often requested at once. This often causes logistical problems. This is also reflected in the price. The German price is now at the same level as the Dutch price. The price has been stagnant for the third consecutive week at €15.20.
In the German market, there are suggestions that prices could rise again soon. During this period, the market is generally quieter, but it tends to strengthen in the December months. Demand generally increases during this period, as many sweets are consumed in December. This leads to an increase in demand from both consumers and the industry.
Housing order
Finally, outbreaks of bird flu still lead to higher prices. Although the supply in Northern Europe is still relatively limited, infections in Southern and Eastern Europe result in a clearly lower supply. Additionally, the fear of infection already leads to slightly higher prices. Some infections in Northern Europe are increasing market tension. Last week, the first infection in the Netherlands this year occurred on a poultry farm. In Putten, Gelderland, 23,000 laying hens were culled. Additionally, just across the border in Germany, an infection occurred in Kleve, resulting in the culling of 16,000 turkeys. These incidents have led to a nationwide housing order.
