Dutch egg prices at record levels

Although avian influenza continues to spread rapidly, the pace of price increases on the egg market has now eased. In the Netherlands in particular, prices have simply become too high. Egg prices in the country have been at record levels for weeks.Until recently, the rise on the Northern European egg market seemed almost endless. That pattern has now largely been broken. Prices are still increasing, but the pace is clearly weaker. The market remains extremely tight, with the Christmas period playing an important role. At this time of year, demand for baked goods is high, which also boosts egg sales. Another trend is continuing as well: sales of table eggs remain stronger than before. However, prices have now reached a point where the scope for further increases is significantly limited.Dutch price rises for longer In recent weeks, Northern European egg prices have grown far less sharply than earlier this year. In the past three weeks (from week 46), the Dutch egg price rose by only 1.5% to a record €19.85 per 100 eggs, according to data from the Amsterdam index. By comparison: between week 41 and week 46 the price still increased by 11.4%.This means the Dutch egg price is now following the German market, where the price surge had already slowed earlier. As early as week 43, the increase began to lose momentum. In week 48, prices were just 0.9% higher than a week earlier. Compared with the 12% rise since week 38, the rate of increase has therefore fallen sharply.Avian influenza Even though prices are no longer rising as fast, avian influenza continues to put heavy pressure on the market. It is no longer unusual for multiple farms to report infections in a single week on the major egg markets. Market players indicate that local shortages in Northern European countries can no longer be ruled out. In the higher-end segment in particular—such as organic eggs or XL eggs—it is becoming difficult to guarantee that supermarkets will remain fully supplied. That packers and traders can no longer push through additional price increases is mainly because buyers are hitting the brakes. In retail and in foodservice supply, end-user prices have already been raised, but retailers are no longer willing to allow prices to rise further. The fear is that demand would fall too sharply. To prevent this, these channels have already accepted notably lower margins. The approaching holiday season does not help either. Normally, demand from processors begins to dip at this point, as baked-goods production declines toward the end of the month. This is driven by consumers’ desire to start the new year fresh and healthy.