Egg Production

IBISWorld forecasts egg production to swell by 1.3% during 2025-26 to total 1,162.1 million eggs. 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 early. Many egg producers are transitioning 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 is anticipated to recover gradually in the current year.

Demand for eggs has been rising over the past decade. Eggs have long been a cost-effective source of protein, but research suggesting that there is no significant causation of high cholesterol has significantly boosted consumption. In addition, eggs have become a foundation of many weight loss programs, solidifying egg demand 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 exacerbated egg supply shortages. Demand growth has placed significant upwards pressure on egg prices over the five years through 2025-26, which, combined with supply constraints, has resulted in prices rising over the period. Overall, IBISWorld forecasts egg production to dip at a compounded annual rate of 0.9% over the five years through 2025-26.