Rabobank: Strategic changes needed in egg industry

Rabobank highlights the urgent need for strategic changes in the egg industry due to the increasing volatility of egg prices and the impact on consumers and players in the supply chain. High prices have led to supply chain disruptions, price volatility and empty shelves in supermarkets. The industry is struggling with disease outbreaks, cost pressures, regulatory changes and changing consumer demand. Rabobank calls for rethinking value chains, supply chain collaboration and a better balance between supply and demand.

Although some markets have seen price declines, global prices are expected to remain high throughout 2023 and 2024. In markets with bird flu, high costs and regulatory changes, prices will remain high and volatile. Rabobank is concerned about the impact of high prices on low-income consumers in emerging markets, where eggs are an important source of affordable protein and nutrients. Government intervention, such as price caps and import restrictions, further complicates the situation.

Rabobank emphasizes that business models and value chains must change to better deal with the challenges. A balanced approach with increased customer engagement, value chain collaboration and strategies to reduce the impact of disease outbreaks and government intervention is essential. Collaboration between industry, customers, governments and stakeholders is needed to optimize and align value chains with business models.

Rabobank remains committed to supporting the egg industry in navigating these challenging conditions and striving for a sustainable and resilient future.

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