Egg prices in China have resumed their upward trend this month after a period of stabilization in July, following a sharp increase to a decade-high in early June. As of August 25, the average wholesale price for eggs was about 81 cents per pound, marking nearly a 10% increase over just half a month and over a 40% rise compared to the previous year, according to government data. A Chinese weight measurement unit called a jin—equivalent to 500 grams—was used for pricing details.
In key egg-producing regions, the average price was approximately $0.76 per jin as of August 26. This represents a 5.7% increase from the previous month and a 57% rise compared to the same period last year. Prices peaked at a 10-year high of around $0.83 per jin on June 3 but declined slightly in July.
Industry experts suggest that the June spike was mainly due to a shrinking supply of eggs. The recent rise, however, is attributed to the start of the traditional peak season for consumption and increased demand for stocking up ahead of the Mid-Autumn Festival.
Some poultry farming companies reported improved earnings in the first half of the year. For instance, a major farm in Hunan province revealed that revenue from its commercial egg business grew by 20%, reaching approximately $3.7 million, with profits also increasing.
On the other hand, egg processing companies faced squeezed profit margins amid rising costs. One prominent group reported a 4.6% revenue increase to about $70 million, but their net profit plummeted by over 82%, falling to roughly $1.6 million.
The company attributed their struggles to last year’s persistently low egg prices, which caused continuous losses for farmers. This led to reduced restocking efforts and a decline in the hen population. Additionally, factors such as the Mid-June Dragon Boat Festival stocking increase and heat-related reductions in production contributed to the price surge in the second quarter.
China’s poultry egg output declined by 2.2% in the first half of the year, totaling 16.9 million tons, ending a four-year streak of growth during this period, according to official statistics.
Analysts expect egg demand to remain strong in early to mid-September. However, they forecast that prices will likely decrease and stabilize from late September onward, driven by increased production capacity due to ongoing restocking and improved laying efficiency in cooler weather conditions.