TOKYO: Egg prices in Japan remain stubbornly high, defying their longstanding reputation as a model of price stability.
Rising production costs, including higher feed prices driven in part by tensions in the Middle East, are largely to blame.
With a potential outbreak of highly pathogenic avian influenza threatening to push prices even higher, industry officials are increasingly anxious as winter approaches, when demand for eggs peaks during the Christmas season.
At the Akidai Sekimachi supermarket in Tokyo’s Nerima ward, a carton of 10 medium-size eggs was selling for 268 yen (US$1.69), or 289 yen (including tax), on Oct 5.
A customer in her 40s said she had cut back on her egg purchases because of the rising prices.
“I used to buy eggs at least once a week, but they’ve gotten so expensive lately that I don’t buy them as often,” she said.
The supermarket offers a special promotion every Sunday, selling a carton of 10 eggs for just 88 yen, including tax. But the discount comes at a cost.
“We lose money on eggs throughout the year,” said Hiromichi Akiba, the supermarket’s president. “It’s tough, but we’re managing by cutting advertising expenses and adjusting labour costs.”
According to the Agriculture, Forestry and Fisheries Ministry, the average retail price of a carton of 10 mixed-size eggs reached 309 yen in a survey of 470 stores conducted nationwide from Sept 7 to Sept 9, matching the highest level on record.
Rising prices for imported animal feed are a major factor keeping egg prices elevated.
The National Federation of Agricultural Cooperative Associations has decided to raise its feed supply prices by an average of about 3,200 yen per tonne for the October-December quarter, citing worsening tensions in the Middle East and the weakening yen, among other factors.
The organisation reviews its prices quarterly, and the latest increase marks the fourth consecutive quarter of price hikes.
Industry officials are also wary that an outbreak of avian influenza this season could lead to egg shortages and further price increases.
Japan has experienced outbreaks of avian influenza for six consecutive seasons since 2020.
During the 2022 season, a record 17.71 million birds were culled, triggering an “egg shock” that forced businesses to suspend sales or discontinue production of numerous egg-based products.
In response, producer organisations and private companies have joined forces to stabilise supplies and improve distribution efficiency.
They are exploring ways to expand the use of frozen eggs, which can be stored for extended periods, including how to share the costs of storage facilities.
The groups plan to compile recommendations during the fiscal year ending in March 2027.
Kewpie is one of Japan’s largest industrial users of eggs, consuming about 250,000 tonnes annually, and it has been diversifying its procurement regions and suppliers.
Since 2023, the company has also purchased imported eggs from Brazil even when domestic supplies are stable.
Ifuji Sangyo, a major producer of liquid egg products, has set a target of increasing its annual sales volume of liquid eggs, including frozen products, from approximately 67,000 tonnes to 80,000 tonnes by the fiscal year ending in March 2031.
Preventing outbreaks of avian influenza will be crucial to ensuring a stable egg supply. The Agriculture Ministry is considering introducing vaccinations against the disease.
Seiji Nobuoka, a former professor at Tokyo University of Agriculture, said there were limits to what poultry farmers could achieve through biosecurity measures alone.
“Effective measures should be pursued,” Nobuoka said, referring to discussions about introducing vaccinations against avian influenza. - The Japan News/ANN
