91ÉçÇø

91ÉçÇø forecasts egg production to swell by 1.3% during 2026-27 to total 1,176.5 million eggs. Producers are expected to continue building out barn and free-range capacity ahead of Foodstuffs' transition from colony caged eggs by the end of 2027. This will likely help bring new cage-free sheds online throughout the year. The Hillgrove farm, back to full capacity following its repopulation, will also contribute to higher output across the year. The expected decline in egg prices over the year is also likely to discourage some flock expansion, partly offsetting the production increase this year.Over the past five years, New Zealand egg producers have been in a transition period in line with the phasing out of all conventional cages by the beginning of 2023 under the Code of Welfare for Layer Hens. In addition, the Government stated that farmers had to decommission cages installed before 2000. Many egg producers have transitioned from conventional cages to farming systems with better animal welfare standards, like colony cages and barns. In response to these legislative changes, demand for cage-free eggs has climbed, partly contributing to an egg shortage over the two years through 2022-23. Nonetheless, following the transition in farming techniques, farmers have been able to gradually ramp up some production to capitalise on rising demand and prices. As a result, egg production has recovered since and is expected to rise over the four years through 2026-27.Demand for eggs has been rising over the past decade. Eggs have long been a cost-effective source of protein, but research suggesting no significant link to high cholesterol has significantly boosted consumption. In addition, eggs have become a cornerstone of many weight-loss programs, solidifying demand for eggs over the past five years as health consciousness has grown. Rising demand has enticed farmers to elevate egg production capacities in pursuit of greater revenue. However, the final transition from conventional cage farming has significantly constrained egg production volumes. A February 2023 fire at New Zealand's largest egg-producing facility, along with the avian influenza outbreak at Mainland Poultry's Hillgrove farm in late 2024, exacerbated egg supply shortages over recent years. Demand growth has placed significant upwards pressure on egg prices over the five years through 2026-27, which, combined with supply constraints, has resulted in prices rising over the period. Overall, 91ÉçÇø forecasts egg production to rise at a compounded annual rate of 1.0% over the five years through 2026-27.