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- Analysis of Factors Affecting Eggs Price
The price of eggs in the market is never static, and there are often fluctuations. But do you know what factors affect the price of eggs? This article tells you what are the factors that affect the price of eggs.
Changes in egg production
Egg production takes at least half a year from the purchase of the chicks to the laying of eggs and has a long cycle. The adjustment of farmers to their production will lag behind the changes in market supply and demand, which will cause periodic changes in the market for laying hens. Therefore, changes in egg production are an important factor affecting egg prices.
The impact of production scale
The impact of production scale. The laying hen breeding industry will always experience large price fluctuations. One important reason is the blindness of farmers in laying hen breeding. With the gradual increase in the scale of layer farming, the supply of egg products continues to increase. Under the condition of the same production technology, according to the law of diminishing marginal returns, the price of eggs will show a downward trend.
The scale of raising chickens directly determines the economic benefits of farmers and the supply of eggs in the market. It has the greatest impact on changes in the relationship between supply and demand and is the main factor affecting the changes in egg prices.
The impact of population size and economic development
The population growth and the rapid development of the regional economy will increase society’s demand for egg products.
The impact of substitute prices
Changes in the price of substitutes will also affect the price of eggs. For example, changes in the price of egg substitutes such as broiler, pig, beef, mutton, milk, and aquatic products will affect the demand for eggs. Generally speaking, when the price of eggs remains unchanged, However, the decline in the price of competitive products will cause consumers to increase their consumption of competitive products, thereby reducing the consumption of eggs; conversely, the high prices of pork and other meats increase people’s consumption of eggs to a certain extent. There is a positive correlation between the per capita consumption of eggs and the price of competitors.
The impact of changes in consumer consumption habits.
Mainly affected by region and consumption season. The characteristics of this phased demand make the sales price of eggs often different in different seasons of the year. Therefore, farmers must arrange production according to the law of market changes to maximize the economic benefits of raising chickens. At the same time, it is worth noting that with the improvement of people’s living standards, the concept of egg consumption is also changing.
The impact of egg costs
The cost of eggs includes feed costs for laying hens, chicken fees, and other costs, of which feed costs and chicken fees account for 75-90% of the total cost. Among them, feed cost accounts for 60-70% of the total expenditure and is the main cost that determines the price of eggs. Eggs, as a kind of poultry product, essentially feed conversion products and have the greatest impact on chicken farmers. Among them, corn and soybean meal are the main ingredients for energy and protein nutrition in chicken feed.
With the rapid development of layer production and the gradual deterioration of the breeding environment, the concentration of harmful gases in the house exceeds the standard, and various factors have induced the occurrence of some non-conditional diseases and atypical infectious diseases. The drop in egg rate and egg quality has led to a significant increase in the proportion of disease prevention and control expenses in the total breeding cost, which has a serious impact on the market’s egg supply and egg prices. At the same time, the occurrence of major diseases will psychologically affect the future expectations of farmers, and further affect the scale of breeding and egg production.
The impact of the number of eggs imported and exported
The import and export volume of eggs is also a part of the egg market supply and demand. Changes in the import and export volume have an impact on the supply and demand of eggs, which in turn affects egg prices. The import and export volume of eggs is also a part of the egg market supply and demand. Changes in the import and export volume have an impact on the supply and demand of eggs, which in turn affects egg prices. However, due to the relatively small number of domestic eggs imported and exported, the impact on prices is limited.
Seasonality of market demand
The economic benefits of laying hen farming are restricted by market supply and demand. When the supply exceeds demand, the price of eggs will fall, but on the contrary, it will increase. There are almost two obvious high fluctuation bands in April, May, August, and September each year. The main reasons are Consumers’ demand for eggs increased before the holiday, which led to an increase in egg prices.
For example, in summer, people’s diet is relatively clear, the consumption of egg substitutes, pork, beef, and mutton decreases, the demand for eggs increases, and the price of eggs rises; on the contrary, the consumption in winter decreases relatively.
Seasonality of production.
The gradual warming of the climate in spring is the most suitable season for chickens to lay eggs. Entering the peak season for laying eggs, the supply will increase and the price of eggs will drop. The high temperature in summer and the hot climate will affect the feed intake of laying hens and cause hens’ The egg production rate has fallen, entering the off-season of egg production, the egg production, and the market volume will decrease, the supply will decrease, and the egg price will rise.