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China's Domestic Egg Sales Over the Worst

by 5m Editor
19 April 2010, at 9:57am

CHINA - Domestic egg sales have been slow recently because of high production costs, increased competition from pork and stockpiling of supplies.

Egg sales are in a sluggish situation, according to Himfr.com, one of China's B2B search platforms.

April is the egg sales peak season, because of the impact of May Day. Many businesses will strengthen their stock about 20 days prior to prepare before the holiday. When the market demand for eggs increases, the price naturally goes up. Almost every year in April, egg prices reach a peak. This year, Tomb-sweeping Day is over and the price of eggs rose by only a small amount. May Day is approaching and the price of eggs has still not seen a rise.

This is attributed to three factors.

Firstly, feed prices rose, increasing the cost of production. According to statistics, the first quarter of 2010 has prices expected to remain at a high level, which means in egg prices are not rising, and as material prices continued to rise there is an increase in the cost of farming. Farmers are making less profit.

Second, pork prices fell, which affects egg prices. For several consecutive months, pork prices have fallen. Consumers have increased their purchases of pork and reduced purchases of eggs, making it difficult to increase the price of eggs.

Third, farmers are reluctant sellers, creating a backlog in unsold eggs. Because every year in April is the peak of egg consumption, many farmers are interested in stockpiling eggs, preparing for April's peak sales. This results in an excess supply during the peak season, making price increases difficult.

Himfr forecasts that, with the May 1 holiday approaching, the price of eggs will increase slightly.