Egg prices climb 8.4 percent as demand rises and supply falls

Egg prices in Denmark were 8.4 percent higher in July than during the same month last year, DR reports. The increase comes as food prices overall have fallen by about 2 percent.

Danske Æg, the industry organisation for Danish egg producers, points to rising demand and reduced supply as the two main reasons for the increase.

Jørgen Nyberg Larsen, a sector chief at Danske Æg, said demand had been boosted partly by the growing focus on protein. Eggs are seen as an inexpensive and natural source of protein, while their low climate footprint has also supported demand, he said.

At the same time, supply has fallen following severe outbreaks of bird flu and Newcastle disease, a contagious viral disease that can affect all bird species.

According to Larsen, the outbreaks have killed around 20 million laying hens in Europe since October last year. That represents 5 to 7 percent of the continent’s total flock.

“When so many disappear from the market while consumption is also increasing, it affects prices,” Larsen said.

Higher costs for feed and grain have also contributed to the price increase, according to Henning Otte Hansen, a senior adviser at the University of Copenhagen’s Department of Food and Resource Economics. He previously told BT that even higher egg prices could lead consumers to stop buying them, which could be a concern because eggs are a basic source of protein, particularly for vegetarians.

Denmark has experienced fewer disease outbreaks than several other European countries over the past year. Poland has been particularly badly affected, while France, Spain, Italy and Germany have also seen severe outbreaks.

Danish producers affected by outbreaks are recovering, Larsen said, but replacing a culled flock takes about six months before new hens begin laying eggs.

He remains concerned about the next bird flu season, which has begun around mid-September in each of the past three or four years. He said the industry was closely monitoring the risk that the virus remains present among wild birds, but he would not predict whether a new outbreak would affect egg prices.