Egg prices in the Baltic region remain under pressure

The consequences of the avian influenza outbreaks in Lithuania and Poland are still being felt in the regional egg market and, according to local market players, could drive it into a new crisis.

Although retail egg prices in Lithuania have risen moderately over recent weeks, wholesale prices are experiencing double-digit growth, Aleksandrs Izgorodins, an analyst at Citadele Bank, revealed. This disparity indicates that businesses have yet to fully pass increased costs on to consumers, as demand remains somewhat weak.

However, such a trend will unlikely last long. “If wholesale prices continue rising for an extended period, a further hike in [retail] egg prices will become inevitable,” Izgorodins stated.

The price situation in the Baltic region’s egg market is largely driven by fears of shortages, as recent avian influenza outbreaks have killed hundreds of thousands of hens in Lithuania and millions in Poland.

Despite that, Lithuania can still meet its own demand for eggs, Gytis Kauzonas, director of the Lithuanian Poultry Association, asserted. The industry has a capacity to manufacture 800-880 million eggs in 2025, he added.

“This [figure] can really fully satisfy Lithuania’s needs, especially since a significant number of eggs are exported outside of Lithuania, including to Latvia. Many processed egg products are exported all over Europe, even reaching America or Japan,” noted Kauzonas.

Still, the supply situation in the Baltic region remains tight. According to Kauzonas, over the past several weeks, Poland lost nearly 7 million heads of hens, which is twice the number of hens in Lithuania.

Earlier this year, avian influenza hit the Vilkyčių paukštyne poultry farm in Šilutė District in Lithuania, where 246,000 hens were culled as a result.

Egg prices have also stabilised in Latvia and Estonia after several weeks of consistent growth, according to several market studies.

Against this background, the Rural Affairs Committee of the Riigikogu, the Estonian Parliament, has resumed discussions on a draft bill prohibiting the keeping of hens in cages after 2035. During the meeting with egg farmers, the Estonian lawmakers recommended that egg farmers switch to free-range farming voluntarily, according to Urmas Kruuse, chairman of the rural life committee.

Farmers, in turn, requested state aid to facilitate the transition and ensure it did not put additional pressure on the prices in the already turbulent market. However, the Estonian authorities hope the switch can be funded from the EU funds.

“The number of laying hens in Estonia is small, accounting for only 0.2% of the total number in the EU. If a decision is made at the European level to make such a transition in the sector, the Union will have to find the means to support it,” Kruuse stated.

Tags: Market, outbreaks, Avian influenza, Lithuania, eggs, prices, Poland