Italy’s egg sales higher during COVID-19 shutdown

COVID-19 has proved positive for Italy’s egg producers with the volume and value of sales markedly higher over the first months of 2020.

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While the outlook at the start of 2020 was relatively weak for Italy’s egg industry, the upswing in demand caused by COVID-19 is expected to result in benefits throughout this year. CorMens studio | Shutterstock.com
While the outlook at the start of 2020 was relatively weak for Italy’s egg industry, the upswing in demand caused by COVID-19 is expected to result in benefits throughout this year. CorMens studio | Shutterstock.com

The Italian egg industry recorded its best performance of recent years during the country’s COVID-19 lockdown, with both the volume of eggs increasing and prices rising.

As in other countries, demand for food during the quarantine period rose significantly. However, Italian expenditure on eggs grew by 22%, double the increase recorded for other food products in the country.

Sales over the Easter period, when demand is traditionally higher, were 66% higher than the average before the pandemic, reaching 116 million eggs, reports ISMEA, Italy’s agrifood market services institute. 

Improved prices

This increase in demand fed through into higher prices for eggs, rising to their highest level in over two years.

While the retail price of eggs in Italy had been more or less stable over the previous three years, at packing stations they fell last year to below 2018 levels, leading the industry to start 2020 with a less than positive outlook. March, however, saw a strong recovery in the price of medium eggs and this continued through April.

The gradual return of economic normality in Italy may have lowered demand for eggs, but prices are expected to remain higher.

Well positioned

Ease of storage, a renewed interest in home cooking and eggs’ healthy profile are all said to have boosted consumer demand while Italian consumers were subject to COVID-19 restrictions.

However, it was not only higher demand that favored the egg industry during the lockdown. ISMEA notes that the sector is relatively independent and so it was not as affected by the supply disruptions that hurt other industries.

Additionally, with only a small number of eggs being exported, disruptions to exports had only a minimal impact. The sector also benefited from limited exposure to the restaurant and hotel channels. While other animal protein producers were hit hard by the closure of this channel, egg producers were comparatively unharmed.

Looking back to 2019, ISMEA notes that the country produced a total of 12.3 billion eggs, with a value of a little under EURO 1 billion (US$ 1.1 billion) at farm level and EURO 1.5 billion at consumer level, considering both fresh eggs and eggs used in other products.

2019 sales of fresh eggs through large commercial outlets, i.e. excluding direct from farm sales or through small grocery stores, was worth EURO 800 million, a 0.5% increase from 2018.

Changing consumer tastes

Demand for eggs sold through supermarket chains and other large outlets continues to change in Italy. Demand for eggs from enriched cages, for example, has been in decline since 2012 and, last year, this decline became even more noticeable.

Production from enriched cages accounts for 45% of total egg production in Italy, down from 55% in 2018, with barn reared eggs accounting for 47%, organic production accounting for 3% and free range for 3%. However, where sales to consumers are concerned, caged eggs accounted for only 31% of the market, a decrease of 25% in comparison with 2018, while barn eggs accounted for 56% of sales, organic accounted for 10% and free range for 3%.

Italy only exports relatively low volumes of eggs, however, the industry had been focusing on increasing its penetration of overseas markets. Last year the volume of eggs exported rose by over 10%. The situation has reversed this year as Italy experienced difficulties for food products in all its export markets. Alongside this fall in exports, imports rose.

Italian-egg-sales-first-quarter-2020

Italy’s egg producers enjoyed higher prices over the first three months of this year, although the volume of eggs produced in cages, as in previous months, continued to decline

 

 

 

 

 

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