Egg prices have fallen sharply in recent weeks, with the wholesale price of a 30 white eggs tray dropping from 105 Egyptian pounds ($2.06) at the start of the month to 65 pounds ($1.27). Traders told Al Manassa that weaker demand and increased production are putting downward pressure on prices, while salmonella rumors and the Tayyibat diet have further affected consumption.
Ahmed Nabil, head of the table-egg division at the Poultry Producers Union, said increased supply is the main factor behind the price decline. Production cycles that began in March and April have now entered the laying phase, increasing the quantities available on the market.
Abdel Aziz El-Sayed, head of the poultry division at the Cairo Chamber of Commerce, similarly attributed the decline to increased production and weaker demand, which have widened the gap between supply and consumption and put pressure on producers.
The decline has been more pronounced for white eggs than for brown and baladi eggs because of the higher volume of white-egg production, as well as differences in demand among the various types, Nabil told Al Manassa.
Egypt’s annual egg production exceeds 17 billion eggs, according to El-Sayed, while demand is relatively weak. The imbalance is putting further pressure on producers as supplies increase.
Demand has also been affected by salmonella rumors circulating on social media, along with calls to reduce egg consumption as part of the Tayyibat diet.
Fears of salmonella grew after US health authorities in July announced a broad recall involving about 19.2 million eggs in several states over suspected salmonella contamination.
El-Sayed stressed that the Ministry of Health has not announced any such infection in Egypt, saying incidents abroad should not be generalized to the local market.
The Food Safety Authority said on Aug. 26 that the incident in the United States involved specific egg products and batches and did not indicate a similar outbreak in Egypt or mean that eggs generally pose a health risk.
At the same time, producers are facing higher input costs, particularly for feed. Poultry producers are experiencing a roughly 20% increase in feed prices due to lower corn supplies from Russia and Ukraine amid disruptions to exports from their ports, according to a previous Al Manassa report.
El-Sayed said feed prices at some companies rose last week, from nearly 23,750 pounds ($465) per ton to about 24,600 pounds ($482), although the increase varied by company. Rising feed costs are putting further pressure on producers’ profit margins as egg prices and demand fall.
He added that producers cannot afford to sell below the cost of production, which is estimated at about 105 pounds ($2.06) per tray at the farm gate. Prices need to cover that cost to keep producers in business and prevent them from leaving the market.
Nabil said that the Tayyibat diet and calls circulating on social media to reduce egg consumption have also contributed to weaker demand, despite eggs being used in many food industries and products, including baked goods, mayonnaise, and sweets.
