Industry expert Anders Wurcel from Ovodan shares insights on the current egg market situation, pricing dynamics, and future predictions in a Vesper-hosted webinar. For ongoing monitoring of egg market data and trends, visit Vesper’s comprehensive egg market intelligence page.

Current market situation: Understanding the global egg crisis

The global egg market is experiencing unprecedented volatility, with prices reaching record highs in recent months. According to industry expert Anders Wurcel from Ovodan, this volatility can be attributed to several key factors:

Avian Influenza impact

The most significant disruption has been caused by avian influenza outbreaks:

  • Approximately 50 million layers were lost in the US (about 16% of total US production)
  • An estimated 7-8 million layers affected in Europe
  • Additional outbreaks reported in Argentina and other regions globally

“The US goes door to door to Europe, begging for eggs after Trump promised to lower prices,” noted Anders, confirming that the US government has indeed reached out to European producers to help address domestic shortages.

Additional market pressures

Beyond avian influenza, several other factors are contributing to the current situation:

  • Growing popularity of eggs: Consumers increasingly view eggs as a healthy protein source
  • Cage-free conversions: The industry-wide shift from traditional cages to cage-free housing is temporarily reducing production capacity
  • Permitting challenges: Many countries face increasing difficulty securing permits for new layer facilities
  • Government buyouts: Some countries (particularly the Netherlands) are offering farmers financial incentives to cease production

Regional market differences

The webinar highlighted significant regional variations in how the egg crisis is playing out:

United States

  • Severe retail impact with empty shelves in many stores
  • Consumer purchase limits (often restricted to one carton per customer)
  • Retail prices of $9-10 for a dozen eggs in some areas
  • Prices have decreased 50% from their peak but remain historically high
  • Current US flock size of approximately 280 million (down from a balanced market need of 320-350 million)

Europe

  • Less severe retail impact with steady availability
  • Significant price increases but without consumer purchase limits
  • More long-term fixed price contracts compared to the US market
  • Increased imports from Ukraine and Turkey
  • Some retailers using eggs as promotional items despite the crisis

Trade barriers and import challenges

A significant portion of the discussion focused on why the substantial price differentials haven’t led to more international trade:

  • Stringent US import regulations, especially for egg products
  • Only Canada and Lithuania currently approved to export egg powders to the US
  • Turkey recently approved for shell eggs for industrial use only
  • Significant approval process required for new countries/facilities
  • Price differences of 5-7x between regions (European egg white powder at €7/kg vs. almost €50/kg in the US)

Anders noted, “If they could lift restrictions and say they accept European regulations… it’s going to be difficult as a businessman to sell at seven if I can get 45. I don’t think a lot of board of directors will approve choosing the lower price if you have the opportunity to sell higher.”

Impact on food manufacturers

Food manufacturers are adopting various strategies to cope with the crisis:

  • Reformulation: Companies are adjusting recipes to reduce egg content, though eggs are difficult to replace with a single ingredient due to their unique functional properties
  • Contract adjustments: Negotiations around pricing and volume commitments
  • Reduced usage: Limiting egg use where possible

Anders emphasized, “A situation like this is not good for the industry. Looking at the long-term picture, yes, there are money to be made right now, but reformulation could lead to permanent demand reduction.”

The webinar addressed whether plant-based egg alternatives might benefit from the crisis, with Anders expressing skepticism: “I think if they were going to be the winner, it would already have happened because there’s been so much focus. What we see here in Europe for all of these alternatives is that they are losing space in the supermarkets.”

Market outlook and price forecast

The near-term outlook shows some positive signs:

  • No major avian influenza outbreaks reported in about a month
  • Warmer weather typically reduces avian influenza transmission risk
  • Repopulation efforts underway with new layers (takes about 5 months before production begins)
  • Prices have begun to ease slightly, even before the typical post-Easter decline
  • Reduced consumer demand due to high prices is creating some market correction

“I think we have peaked,” Anders stated, while cautioning that new avian influenza outbreaks could quickly reverse the trend.

Strategic considerations for buyers

For companies that rely on eggs and egg products, the webinar highlighted several strategic considerations:

  • Current buying patterns have shifted toward spot purchasing rather than long-term contracts
  • Some seasonal production may be delayed if possible
  • Retail price changes are difficult to implement quickly, forcing manufacturers to absorb costs
  • Removing products from retail shelves risks permanent loss of shelf space

Anders also noted that eggs had been “selling too cheap at times” in previous years, with prices sometimes below production costs. “These times I think are over,” he concluded, suggesting that while prices will likely decrease from current peaks, they may stabilize at levels higher than historical averages.

Conclusion

The global egg market remains in a state of significant disruption, though there are early signs of stabilization. Companies throughout the supply chain, from producers to food manufacturers to retailers, continue to adapt to this challenging environment. While immediate relief may come after Easter with seasonal declines and continued repopulation efforts, the long-term impacts on pricing, product formulation, and consumer behavior remain to be seen.

To stay informed on the latest developments in egg markets, including price trends, trade flows, and production data, Vesper’s market intelligence platform provides real-time data and analysis to help stakeholders navigate this volatile landscape.

This article is based on a webinar hosted by Vesper featuring industry expert Anders from Ovodan, a global manufacturer of egg products with facilities in Denmark, Germany, China, and Venezuela. Access the full on-demand webinar here: https://webinars.vespertool.com/ref/ObwuchwWapoKVpdR?utm_source=showcase