The nationwide shortage of eggs and increased wholesale prices pose major challenges to New Zealand's commercial bakers as they scramble to secure a steady supply of their key ingredients.
This egg crisis, which is currently being felt globally, is adding to the supply challenges and increased costs that have become a part of life in the post-Covid and Russia-Ukraine crisis world. A variety of factors have contributed to the shortages, including an unprecedented outbreak of bird flu that has caused shortages in the US and UK, increased costs for feeding hens and the usual supply issues plaguing all industries.
Back home in NZ, the egg shortage is caused by a ban on battery-caged hens which was introduced in 2012.
The Egg Producers Federation had, at the time, warned that the phase-out period was "extremely short" and would cause major disruption in egg supply for consumers as many poultry farmers will go out of business.
The egg farming industry has undergone numerous changes over the past decade. Many small farmers have quit the business while others had to redesign their facilities to adopt colony, barn, or free-range farming methods.
Furthermore, major NZ supermarket chains pledged to stop selling colony eggs either by 2025 or 2027, causing another setback for egg farmers who were already facing many challenges and expenses to comply with the changing rules of doing business.
Back in 2012, 84 per cent of egg producers used the cage method. Since then, there has been more than 10 per cent decline in egg production.
The average consumption of eggs in NZ is around 250 eggs per person per year with Retail sales of eggs upwards of $286 million (2021).
In addition to causing difficulties for households, as eggs are a staple of most diets, the current shortage is also causing headaches for commercial bakeries since eggs are essential in many baked goods.
Shyam Patel, owner of a Christchurch bakery and cafe, told the Indian Weekender, "We have a local supplier who had warned us of the situation, but there is nothing we can do except bear with the shortage. Most of our products have eggs as an essential ingredient and we have not been able to produce as much as we used to, leading to loss of revenue and a decline in customer satisfaction.
"Since the shortage, egg prices have gone up roughly by 15 per cent but we can't pass on the entire increase to the customers who are already reeling under the inflation. We are already grappling with the increased cost of butter and cheese."
Some industry experts think the supply will continue to be tight through the year as the farmers scramble to comply to the new legislation.