Due to inadequate supply and high cost, egg price in China is rapidly rising in recent. On 18th August, at the egg wholesale markets of 36 Chinese medium-sized and large cities, the average price of fresh egg was RMB 8.05/kg, up by 3.01% than the last week. According to the national agricultural products and materials monitoring system (Xinhua News Agency), egg price reached RMB 9.20/kg on 22nd August. The price has kept rising for at least two months. The current price is over 10% higher than the same period of last year. Egg prices in 31 provinces has exceeded RMB 8/kg, in five of which, the price is over RMB 10/kg.

BOABC predicts egg price will continue to rise, because with temperature falling the egg consumption will rise. Meanwhile, layer cost is still at a high level.

While feed price went up from Year 2008 on, egg price lingered at RMB6/kg until recently, resulting negative returns in egg farms. Egg production cost added 10% in the first half of this year, but the producer’s egg price merely edged up 5%. Losses forced egg farms to cut down their layer inventory in the second quarter of this year. The recent high temperature has lowered egg production ratio and floods have hindered egg shipment.

In recent, the high temperature and rainstorm causes egg-laying rate declining and transportation problems, layer inventory in certain areas impacted by disasters drops substantially. The situation of egg supply shortage gets worse.

It takes four months for young layers to enter egg-laying stage. Considering laying rate rises in autumn, the supply will not greatly increase within two months. Also, the demand for eggs usually goes up substantially around the Moon Festival and the National Day. It is presumed that egg price may keep going up in the next few months.