Taiwan’s egg supply exceeds demand, leading to a continuous decrease in prices and hitting a new low in four years. The Ministry of Agriculture recently stated that besides hoping to adjust production levels in the industry, they will also increase diversified channels for eggs and facilitate processing and utilization.
Last year, Taiwan faced an egg shortage, causing egg prices to soar and become a hot topic. However, in recent times, Taiwan is experiencing an oversupply of eggs. The Taipei Egg Merchants’ Association announced a reduction in both the producer and wholesale prices of eggs. An internal report from the Poultry Industry Supervision Committee even warned of “severe oversupply” for the first time.
Taiwanese consumers demand approximately 120,000 boxes of eggs daily. According to statistics from the Republic of China’s Ministry of Agriculture’s Egg Production and Marketing Information Platform, as of today (22nd), there are 37.04 million egg-laying chickens, producing 125,000 boxes per day (200 eggs per box), resulting in a daily surplus of over 1 million eggs.
The Economic Committee of the Legislative Yuan of the Republic of China conducted a report and inquiries on the evaluation and implementation plan of the Ministry of Agriculture regarding the increase in public grain purchase prices as per the Legislative Yuan’s resolution on the 17th. Minister of Agriculture Chen Chun-chi, prior to the meeting, spoke to the media regarding the egg price issue, emphasizing that the stability of production and sales is a shared responsibility and goal of the industry and the Ministry of Agriculture. The Ministry of Agriculture will provide information on the number of egg-laying chickens and daily production volumes, hoping that industry players will adjust accordingly.
Minister Chen stated that the Ministry of Agriculture will actively expand diversified channels for eggs since eggs have various uses beyond fresh consumption, including processing opportunities. Accordingly, efforts will be made to facilitate such channels.
Recent reports from Central News Agency indicate a continuous decline in egg prices. Su Yen-wen, Deputy General Manager of Maosheng Food Corporation, stated on the 21st that egg supply surpasses demand, with chicken prices falling below the cost of breeding, leading to chicken farmers selling off their flocks. It is projected that future egg demand will increase, prompting Maosheng to assess acquiring chicken farms and establishing their own poultry farms, with plans to acquire two next year.
Lin Tian-lai, Chairman of the Taipei Egg Industry Cooperative Association, informed Central News Agency reporters that this week would continue to be observed like last week. The producer price remains at NT$21.5 per catty, with no adjustments. However, the industry believes that the daily production volume is not the official 125,000 boxes as reported, but has reached 135,000 boxes. Grocery stores in the south are selling loose eggs at NT$25 per catty, while in Bali, New Taipei City, grocery stores are selling them for NT$26 per catty. Lin Tian-lai mentioned that discussions were held on the 21st between the industry and the Ministry of Agriculture to reduce the hatching quantities of chicken farms as a means to decrease production.
The Livestock Department of the Ministry of Agriculture of the Republic of China pointed out that in July, in addition to promoting the elimination of old laying hens by the industry, they also reduced the hatching quantity of chicks. A recent survey conducted by the Republic of China Poultry Association showed that last week’s daily production volume decreased from 131,000 boxes previously to 129,000 boxes. However, due to the lack of comprehensive survey data, the Ministry of Agriculture will need to consolidate information on chick hatching quantities, elimination of old laying hens, etc., before updating on the 23rd.
Modernizing egg poultry farms is essential to achieving production stability. Despite the Ministry of Agriculture’s recent subsidy measures to encourage industry updates and software upgrades, the Livestock Department reported that the number of registered egg poultry farms updating is quite limited.
Regarding modern farming practices, large corporations such as Dacheng and Bofeng are leading the way, collectively contributing about 20% of the national output through self-operated and contract farms. However, traditional semi-open chicken-cage farming remains predominant, with mixed breeds of old, middle-aged, and young laying hens, making production control challenging. Faced with higher production than market demand, industry players typically reduce feed and eliminate old laying hens to adjust production levels accordingly.
However, the Livestock Department also noted that most egg poultry farmers are reluctant to innovate, resulting in high and unstable production levels. As egg prices continue to decline due to sustained high production, these traditional egg poultry farmers may not withstand the financial strain and could either voluntarily exit the market or be phased out by market forces.