Asia's changing role in the global egg industry – an analysis of past, present and foreseeable future dynamics

Abstract

Between 1970 and 2006, regional patterns of egg production and egg trade changed considerably. Until 1980, European countries dominated global egg production. In the following decade, less developed countries surpassed the more developed countries in their production volume. This shift was caused by the rapid increase of egg production in Asia. In 2006, Asian countries contributed more than 60% to the global production volume. In particular, the dramatic growth in China has been responsible for the spatial shift of production centres. In several other countries, such as India, Indonesia, Malaysia, egg production increased also considerably. The expansion of egg production had impacts on the patterns of egg exports and imports. European countries still dominate the trade in shell eggs, but Asian countries could gain market shares, in particular since the 1990s when several newcomers entered the global egg market. Malaysia and India became important egg exporting countries and changed the traditional market patterns in the Near East and in Southeast Asia. In 2005, 25% of all shell eggs that were traded worldwide had an Asian country as their destination. Besides importing countries with a long tradition, such as Singapore, Saudi Arabia or the United Arab Emirates, new importing countries entered the market, such as Japan. Asia will also play an outstanding role in the projected additional egg demand of 12 million t until 2015 and will also strengthen its position as the leading continent in egg production. About 75% of the expected additional demand will occur in Asia, more than 50% in China alone. In 2015, Asia will contribute over 62% to global egg production in 2015. These future dynamics will open new markets in several Asian countries for breeding companies as well as developers and producers of equipment for laying hens. In these countries, the feed industry will expand, which again will impact on the trade patterns of raw materials for compound feed. The growth of egg trade and the new patterns of trade flows will increase the risk of the introduction and dissemination of highly infectious poultry diseases. This and the foreseeable increase of feed prices may result in slower growth rates and even massive disturbances of the present and projected pattern of egg production in Asia.