China’s layer industry will experience an oversupply in 2015 that will lead to the fall of egg prices.
Professor of China Agricultural University, Chief Scientist of the National System for Layer Production Technology Yang Ning recently delivered a speech on the situation, analyzing China’s layer industry at the Seventh China Layer Industry Development Conference.
He said that the Chinese layer industry is being standardized. Although the industry is progressing, and production is improving, he forecasted that the egg supply will still exceed demand in 2015, egg prices will continue to fall and lead to the cut of benefits.
Yang said his forecasts originated from his consideration of the challenges confronting China’s layer industry, such as the overcapacity, the threats of diseases due to invalid biosecurity systems and food safety problems.
Yang pointed out that, in the past year, egg prices hit record highs. The average retail price of egg was CNY10.33 (US$1.69)/kg from Jan, 2013 to May, 2015. In Sept, 2014, retail price of egg peaked to CNY12.2/kg. So, the rebound of egg prices motivated the layer farmers. From February to May, researchers monitored that egg production continued to rise, and led to oversupply, Yang said.
Yang said, now, the prices of the eggs are subject to changes in supply and demand and the Chinese layer industry is still stuck in its three-year cycle.