The egg industry tightens control: the future of supply, prices and exports

A few hours after the Government announced emergency medical condition, due to the discovery of one case in the north of the country, four more were confirmed, which is why an emergency meeting was held to strengthen preventive actions. The goal of the government is that the virus does not reach the birds for consumption.

The Argentine Chamber of Poultry Producers and Industrialists (CAPIA) emphasized that it works “in full coordination” with the bodies for health and agricultural policy prevent avian influenza from reaching industry, mainly to egg production.

Javier Pridathe head of the entity, has confirmed it so far these are isolated cases in wild birds; “We have activated systems to ease the transition to trade,” he said.

The entrepreneur guaranteed the supply for internal consumption, but warned that if the situation worsens “there is only stock for processed food (egg powder) but not for fresh produce that represents 95% of local consumption”.

In this sense, regarding the dynamics of the product, he explained that the egg assumes twice as much tax burden which have meat, soy, milk and chicken, but, in contrast, does not pay export duties; because, part of the concern today, is focused on restrictions that may be established by major buyers: Japan, Russia and Denmark.

The external benefit, he explained, enables them to offer the best price on the domestic market where it competes with meat, which is around 1600 dollars (kg); chicken breast 1200 dollars, while 16 eggs (one kilogram) cost 450 dollars. “We offer protein for $1.50 while in the region a dozen eggs cost an average of $4”he emphasized.

Possible scenarios

Bird flu wave “could not be controlled” in Europe, USA and Canada. It caused considerable damage to the industry which they had to kill almost 100 million poultry between October 2021 and September 2022..

The situation served as a warning for producers from the opposite hemisphere, faced with migration due to the change of season. In that sense, In recent weeks, controls and a coordinated plan of action have been strengthened.

Prida identified scenarios from a medical emergency. “The optimal scenario is that of Colombia that affected wild birds and it reaches the birds in the yard the most; the most complex is the one they went through Bolivia, Ecuador and Peru where the virus entered commercial birds”.

Shoots can have serious economic consequences for the poultry industry, wild bird health, producer livelihoods and trade, but, for now the situation is under control.

“Beyond the limitations that the public sector normally shows, this time it’s the removal of the cap,” said Prida i he emphasized the coordinated work of SENASA.

in balance

with remove retentionin January 2021, the sector moved from exports of 1.63% to 4.2% of total production, which meant 114% jumpwith almost 1000 million eggs.

Of the countries in the region, Argentina is one of the main exporters of eggs in the world.

According to data from the private sector, 15.291 million units were produced in 2022, of which 14.603 million were for domestic consumption, which shows that Of the total units produced, 96.8% are destined for the domestic market, and the rest for the foreign market.