German egg prices are falling quickly

The egg market remains very tight. Egg prices are falling sharply, but this is mainly due to the exceptionally high starting point. The table egg market in particular remains tight, while the industry is somewhat better able to cope with the shortage.Prices for brown M eggs continue to decline, as reflected in the AG index. Since the peak in week 15, the price has fallen by 4.4%. In week 20, the traders’ price for brown M eggs dropped to €19.45 per 100 eggs. Although the decline is clear, prices remain historically high. By comparison, last year’s highest pre-Easter price, reached in week 14, was still lower at €18.70 per 100 eggs. In week 20 last year, the price stood at €17.65 per 100 eggs.The rapid decline in egg prices is mainly the result of the very high price level from which they started. In physical market terms, the market remains very tight, although not as tight as it was just before Easter. Easter demand has, of course, disappeared, while the arrival of spring is also weighing on demand. During the warmer months, industrial demand for eggs typically declines, as consumer demand for baked goods falls.Although the extreme tightness seen around Easter is no longer present, availability remains very limited. For consumers, the shortage is now far less visible. Unlike about a week and a half ago, shortages are no longer evident in supermarkets. At packing stations, however, the situation remains different: eggs that come in are shipped out immediately. Table eggs in particular remain very scarce.Industry buying in Eastern EuropeThe industry is now managing to absorb the shortages somewhat better. Market participants report that large volumes are being purchased from Eastern Europe. Some of these are enriched-cage eggs from countries such as Poland, but volumes of battery-cage eggs from Ukraine have also clearly increased. Weser-Ems falls more sharply Meanwhile, prices in Germany are falling considerably faster. As seen earlier, tightness in the supply of KAT-certified eggs has contributed to greater price volatility in Germany. The Weser-Ems index for German industrial barn eggs continues to fall. Because of this dynamic, prices tend to be less stable than in the Netherlands: around periods of peak demand, prices are slightly higher, while weaker demand tends to push prices down much faster. The Weser-Ems price has declined by 11.5% since its peak in week 13. In week 19, the index fell to €18.30 per 100 eggs. Although the decline is substantial, prices remain historically high.