TAIPEI (Taiwan News) — Negotiations between poultry farms and the Taipei Producer Association led to an agreement to raise egg prices by NT$2 (US$0.07) per kilogram beginning today (Feb. 13).

Unfortunately, many in the industry believe the price increase is too little too late, and cannot alleviate supply-side pressure brought about by the global outbreak of avian flu. Domestically, egg shortages are becoming more common as local egg farms continue to come under pressure from fewer laying hens and higher raw material prices.

At the moment, not only are laying hens in short supply, but also broiler chickens. It may take poultry stocks at least three to four months to regenerate, per UDN. Many within the industry believe that not only eggs, but even chicken meat prices will remain high in the short to mid-term.

“Egg merchants still can’t make money as avian flu continues to rage and the price of raw materials and labor has risen, which is making it hard for egg merchants," said Fwusow Chairman Hung Yao-kun (洪堯昆).

Hung added that his company originally hoped to import chicks from abroad, but the avian flu has had international effects, and the quantity of chicks hasn’t been enough to satisfy demand, leading to further complications and higher prices, per UDN.

CP Foods Chairman Willis Cheng (鄭武樾) also believes that the recent price increase is too small as the avian flu outbreak has simply killed too many chickens and resulted in fewer eggs and a serious imbalance in supply and demand.

Cheng added that another mass culling of tens of millions of chickens in Europe and the United States a few days ago, making it the worst outbreak of avian flu in history. Cheng worries Taiwan could suffer both a chicken meat and egg shortage if imports are not allowed, per UDN.

According to a manager from Morn Sun, another Taiwanese poultry producer, avian flu in Europe, the United States, and Taiwan will definitely upset the balance between supply and demand, with an egg shortage inevitably leading to higher prices.

He believes the new supply won’t come online for another four months as local consumers might face a difficult time securing a daily egg supply.