Latin America’s egg market is undergoing significant change. The COVID-19 pandemic has influenced not only consumer behavior, but also highlighted the need for new marketing channels. Additionally, a number of countries in the region are now producing more eggs than the market can absorb.
In Colombia, for example, output grew by in excess of 14% in 2020, while in Brazil output by 8% and in Argentina by 6%.
These high growth levels have not been accompanied by comparable increases in demand and, in those countries where demand growth has been strong, it has still failed to keep up with the growth in supply. Prices have fallen, in some cases below cost of production, notably in Argentina.
According to Javier Prida, Executive President of the Argentinian egg producers’ association Capia, and coordinator at the Latin American Egg Institute, it is increasingly important for the egg industry to adopt new sales and marketing techniques.
He says: “There are many countries that are below the world average for per capita for egg consumption of approximately 11 kg or 180 eggs. We want to support them, there is a lot of room for growth,.”
Alongside raising consumption levels, many want to improve and grow their marketing channels.
Middlemen
Argentina, Mexico and Colombia all enjoy very high egg consumption levels, yet there is still a need to improve marketing techniques. Intermediaries, or middlemen, are seen as an issue, and the industry wants to find ways of selling directly to the consumer.
“The ones that loose out are not simply the producers, but consumers too as they pay much more for their eggs”, argues Prida.
He notes that, for example, a dozen eggs may, without packaging, cost US$1-US1.25 yet, in many countries, consumers pay US$3. There are those in the middle that are making a lot of money, while risking very little.
Egg's appeal
Beyond removing the middleman, there is still a lot more that can be done in terms of egg marketing.
Prida states: “We need to learn to how to seduce the consumer’s eyes”.
This is not simply applying changes to packaging but also improving written communications highlighting the benefits of egg consumption and reflecting the changing market.
“Producers need to keep up with these changes, sharing their own experiences, those of consumers, and communicating with journalists, government officials and the managers of the companies that buy our eggs,” Prida says. “We need to start changing the status quo of many of these marketing systems. We need to modernize and adapt them.”
Marketing seminar
The International Egg Marketing Seminar has proved a useful resource for making these changes and improving communication, with material from previous events disseminated via social media. Between August and December last year, monthly followers grew from 3,000 to 1.7 million.
“The amount of good quality information that we have shared is impressive,” says Prida, adding that posts, in Spanish, Portuguese and English, are always made in accordance the Latin American Poultry Association’s regulations.
Are egg products the way to go?
Developing egg products aimed at consumers, for example ready to heat omelets or hard-boiled eggs has not proved successful. Latin American consumers still want to buy eggs and break them at home and this has been demonstrated in several countries where egg products have been launched.
“They have been unable to increase market share or become part of regular consumption,” Prida notes.
In the U.S., Canada and Europe, the situation is different. In those areas, consumers are more likely to purchase ready-to-eat foods. Latin Americans, however, still like to buy more fresh foods and prepare them at home.
Social programs
An additional channel to absorb Latin America’s higher egg production could be government social programs and humanitarian aid. Countries such as Cuba and India, for example, have egg-based programs for school children. In some India states, school children are given three eggs a week.
“If we could achieve something like this in Latin America – where school children could receive three eggs a week – the poultry industry could thrive,” says Prida.
However, it would not only be the industry that would thrive, but society in general. Prida notes that well-nourished children are less likely to have attention deficit disorder.
He adds: “This is a weak point where Latin America producers are concerned, and where they need to work”.
Javier Prida, Executive President of Argentina’s Capia, and Latin American Egg Institute coordinator believes that egg producers need to update their response to changing consumer habits and market conditions. | Courtesy Capia, Argentina
6th International Egg Marketing Seminar
The 6th International Egg Marketing Seminar, organized by the ILH and ALA, will be held on March 10th 2021
Speakers will include: María del Mar Fernández, from Spain’s Inprovo, who will examine the European Union’s experience prior to and during the COVID-19 pandemic, with particular reference to sales and marketing and consumption; Alejandro Romero, of Geolife Swiss, Mexico, who will discuss shell egg marketing; and, Juan Felipe Montoya, CEO of Incubadora Sandtander, Colombia’s largest egg producer, on how the company has revolutionized egg marketing.
For more details, visit: www.ilhala.org/60rdm-seminario-internacional.html
