Egg production in New Zealand is expected to fall
Egg production in New Zealand is expected to drop by 4.5% in 2019-2020 as the country is in a transition phase from conventional cages to free-range farms until 2022.
"The conventional cage ban had resulted in a sharp decline in egg production. While the phasing out of conventional cages was expected to benefit farmers producing free-range eggs, consumers would inevitably have to pay more for their eggs", commented Tom Youl, IBIS World Senior Analyst, according to New Zealand Herald.
Demand for eggs has been rising in the last 10 years but the new regulation has generated a spike in farm-gate prices. An IBISWorld industry report on Poultry Meat and Egg Farming in New Zealand said operators in the poultry meat and egg farming industry were expected to benefit from forecast higher poultry consumption and egg prices over the next five years.
Poultry exports increased 5.6% during the year ended March 2019 and were expected to be close to $100 million for the year ending June 2019.
Nevertheless, some egg farmers have decided to exit the market contributing to a 14% decline in New Zealand's hen flock in 2018-19.
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