Egg prices have plummeted, causing heavy losses for poultry farmers.
(Baonghean.vn) - From mid-February until now, the price of chicken eggs has continuously decreased. In particular, at the beginning of March, the price dropped sharply, causing losses for egg farmers.
Egg prices have dropped sharply.
With over 17,000 laying hens, Mr. Tran Xuan Son's farm in Nghia Hung commune (Nghia Dan district) produces 13,000-15,000 eggs daily for the market. However, since the Lunar New Year, the sharp drop in egg prices has caused him significant losses.
"Egg prices have dropped sharply. On average, the investment cost per egg is about 2,100 VND, while the selling price is only 1,700-1,800 VND per egg, resulting in a loss of 400 VND per egg," Mr. Son said. According to Mr. Son, egg prices need to be at least 2,200 VND for farmers to make a profit.
For over a month now, the family of Ms. Pham Thi An, owner of a 3,500-chicken farm in Dien Trung commune (Dien Chau district), has been suffering heavy losses due to the sharp drop in poultry egg prices. On average, with 2,500 eggs sold daily, she loses more than 1 million VND, not including labor costs as she has two family members caring for the flock.
Despite having established partnerships with 22 stores, supermarket chains, and schools to secure outlets, 50% of the egg production from Thang Linh black chicken farm in Nghi Van commune (Nghi Loc district) still depends on local markets and retailers. Therefore, when the market fluctuates and egg prices drop sharply, 50% of the eggs sold at these markets still incur a loss of 1,100 VND per egg.
Mr. Nguyen Huu Thang, the farm owner, said: "For 50% of the eggs (5,000 eggs/day) that are sold through a distribution network, the price is stable. The other 50% sold retail results in losses. Fortunately, the eggs sold through the distribution network have offset the losses for the remaining eggs."
Egg prices have not only plummeted but the market has also stagnated. Meanwhile, the humid weather makes it impossible to preserve eggs for long periods, leaving egg farmers in a desperate situation. Besides supplying communal kitchens, distributors, grocery stores, and local markets, many farms have had to mobilize workers to sell eggs retail.
"In the markets, eggs are also difficult to sell despite the sharp drop in price, because the markets serve restaurants, pubs, and family meals. At this time, businesses are slow and have few customers, so they are only buying in moderation; the cool weather is favorable for chickens to lay eggs, so many families raise a few laying hens to be self-sufficient in eggs. Therefore, the demand for poultry eggs has decreased sharply," said Ms. Dinh Thi Hong Loan, owner of a poultry egg stall at Vinh Market.
Before Tet (Lunar New Year), the price of chicken eggs was still at 2,500-2,700 VND/egg (depending on the type), but after Tet, the price of eggs has continuously decreased. Currently, white chicken eggs are 1,700 VND/egg and red chicken eggs are 1,500 VND/egg, meaning each egg has decreased by 700-1,000 VND.
What is the cause?
The reason for the sharp drop in poultry egg prices at this time is that after the Lunar New Year holiday, companies are not operating at full capacity, so there are fewer workers concentrated in one area, and the consumption of eggs in collective kitchens has decreased significantly.
Secondly, poultry eggs are mainly supplied to confectionery companies, and after Tet (Lunar New Year), these companies have not yet ramped up production and are mainly selling off their existing inventory.
Thirdly, people still have leftover food from Tet (Lunar New Year), so the demand for eggs has decreased.
Fourth, starting from the 25th day of the Lunar New Year, eggs begin to accumulate, resulting in excessively large egg stocks in farms. Meanwhile, chickens continue to lay eggs daily, leading to a supply exceeding demand.
In addition, due to humid weather conditions, most small-scale poultry farms lack cold storage facilities, forcing them to sell off their eggs in large quantities… “Eggs are very difficult to preserve. Especially in humid weather like now, they spoil easily. Therefore, if they are to be stored, they need specialized egg storage facilities with cold storage. However, not every farm has cold storage,” said Mr. Tran Xuan Son.
“Usually after Tet (Lunar New Year), egg prices decrease and purchasing power is more limited. However, this time, egg prices have dropped quite sharply while input costs have increased, so many farms are facing losses. Some farms have been forced to reduce their flocks to cut costs, reduce labor, and ‘cut losses’,” said Mr. Dau Ngoc Hoa, Director of Dien Trung Livestock Cooperative (Dien Chau).
Unpredictable weather patterns and fluctuating consumer markets pose significant risks to the poultry industry (including egg production). Therefore, to ensure stable development of livestock farming in general, and poultry farming in particular, farmers need to invest comprehensively, from building barns and storage facilities to establishing a stable production-consumption chain. This not only helps control diseases during the farming process but also helps farms minimize the impact of market uncertainties.
At the same time, localities need to build linkages in livestock farming to reduce input costs; support cooperatives and people to promote trade activities, and sign contracts for the consumption of poultry eggs with businesses, convenience stores, collective kitchens, etc.
