Eggs

  • GVP $402 million est. Up 13% year-on-year.
  • Egg prices increased, up 8% yoy based on national average gross unit value.
  • Barn laid eggs accounted for 21% of national sales through supermarket majors in 2023-24.
NSW egg production is estimated to have increased 5% in 2023-24 from the prior year, to 209 million dozen. Prices were estimated to have increased by 8%, based on the average gross unit value. The gross value of production for 2023-24 is estimated to have increased 13% to $402 million.

The industry continues to shift production away from cage systems to free range and barn systems with free range eggs dominating the major supermarket chains' sales. Notably, there has been substantial growth volume of barn laid eggs produced and sold through the supermarket majors in recent years. Alongside these changes, the industry is facing increased biosecurity challenges, with recent outbreaks of Avian Influenza in several commercial poultry flocks reported in Australia through the year.

Production

Egg production is estimated to have increased in 5% in 2023-24 to 209.4 million dozen. This follows a 6% lift in production achieved in 2022-23, as industry rapidly adjusted to increased demand post-COVID. aq NSW accounted for an estimated 36% of the national flock in 2023-24. 38

Based upon the sale of eggs through the major supermarkets, which account for an estimated 43% of egg sales, farmers continue to adjust production systems, shifting resources away from cage systems to free range and barn systems. 38

Whilst free range egg production now accounts for 57% of sales through the major supermarkets, the share of sales from barn systems has also risen substantially as the major chains work to achieve their aim of phasing out the sale of cage produced eggs by 2025. Egg producers have been investing in barn systems to meet the supermarket's increased demand for non-cage eggs. Barn produced eggs have increased their share of supermarkets sales from15% in 2022-23 to 21% in 2023-24. Over the last five years barn egg volumes sold through the supermarkets have more than doubled. 40

The potential for industry to increase supply in the short term has been partly impacted by the occurrence of avian influenza during 2024 in south-eastern Australia. This did result in some egg shortages at supermarkets. With only two commercial layer pullet suppliers in Australia there is limited short term capacity to lift egg supply with restocking of avian influenza impacted farms estimated to represent 7% of the national flock as at June 2024. 115 136

NSW egg production aq

Source: Australian Eggs (various issues) , ABARES (2024)

Production systems share of major grocery chain sales by volume

  • Cage eggs
  • Free Range eggs
  • Barn-Laid eggs
  • Specialty eggs
Source: Australian Eggs (various issues)

Price

Egg prices lifted in 2023-24 by an estimated 8%, based on the average gross unit value, noting that this estimate includes additional costs of marketing inputs such as containers, commission and other expenses incurred in getting the commodity to the principal markets. 3 Retail prices lifted by a similar amount. 39 3 The retail premium for free range and barn eggs over cage system eggs continued to decline which is helping to accelerate the shift away from cage produced eggs.

Industry has flagged the substantial increases in costs of egg production with labour costs increasing and noting that additional labour input is required in some of the newer production systems compared with cage systems. While grain prices generally eased through 2023-24, other input prices have increased, for example the cost of starter pullets have increased notably from a reported average price of $10/bird in 2021 to $20 in 2024. 151 136

Egg prices by production type and underlying average gross unit value f

  • Average gross unit value
  • Retail Cage egg
  • Retail Free range
  • Retail Barn-laid
Source: Australian Eggs (unpublished) , ABARES (2024)

Trade

Eggs
Exports of eggs and processed egg products such as powdered eggs, although minor for the domestic focussed egg industry, was valued at $1.3 million in 2023-24. This compares with the $2 million worth of egg product exports reported in 2022-23. 79 At the same time, egg imports (in-shell and not in-shell) decreased 24% in value terms in 2023-24 to $17 million. Imports tend to be volatile, when viewed over a longer term the value of imports have essentially doubled based on the five year average up to and including 2021-22. 79

The global occurrence of highly pathogenic avian influenza remains a major issue for the egg industry globally. Various countries have reported egg price increases attributable to avian influenza outbreaks leading to historically high egg prices in numerous countries including in the European Union and volatile pricing in the United States during 2024. Concurrently, strong demand for eggs as a replacement for high priced meat has also been observed in a number of countries. 105

Outlook

The poultry industries continue to address the biosecurity challenges presented by Avian Influenza. Recent reported occurrences in commercial poultry operations in NSW and the ACT in 2024, while not the more serious H5N1 strain causing global concern, is requiring poultry producers to continue to ensure high levels of biosecurity are maintained. 57

Consumer demand is anticipated to remain strong for eggs, typically at least tracking population growth with the product representing a valued low cost animal protein. Meeting this demand will require ongoing investment into production capacity by industry.

DPIRD Engaging with Stakeholders

2024 Agtech Schools Immersion Program

The Agtech Schools Immersion Program provides students an opportunity to visit research institutes and participate in hands-on learning at TAFE NSW in various agricultural technologies, to help develop interest in and growth of the agricultural technology sector in NSW.

AgTech

The final event of the Agtech Schools Immersion Program was held at Wagga Wagga Agriculture Institute, immersing kids with cutting-edge agricultural technologies. Previous events were held at Tamworth and Orange, showcasing the program's commitment to equipping students with essential skills and hands-on experience in using agricultural technology.

The Agtech Schools Immersion Program has provided students an opportunity to visit NSW Department of Primary Industries and Regional Development (DPIRD) research institutes and participate in hands-on learning at TAFE NSW where they design model smart farms, use drone mapping, and learn to use data and artificial intelligence to analyse weather patterns.

The delivery of this program would not have been possible without the considerable support provided by the Charles Sturt University’s Global Digital Farm team over the course of the program at Wagga.

NSW DPIRD Schools Program Coordinator Michelle Fifield said these sessions help spark interest, drive innovation and attract investment, contributing to the growth and development of the agricultural technology sector.

“Giving students hands-on experience with Agtech helps provide them with the right tools and enables them to gain essential skills, opening the door for more opportunities for those looking to enter agricultural industries,” Ms. Fifield said.

“This experience not only allowed these students to explore innovative tools but also deepened their understanding of how Agtech is shaping the future of farming and how this technology can be used practically. By investing in our youth and their education in Agtech, we are ensuring a sustainable and innovative future for agriculture in NSW.”

The Agtech Workforce Development Strategy is part of the NSW Government’s ongoing work to invest in skills and employment to future-proof the agriculture sector.

This event is being delivered by the NSW Department of Primary Industries and Regional Development and Training Services NSW under the Targeted Workforce Development Scheme.