GARBE PYRAMID EGGSTRA

Egg inflation at record level

The “egg-flation curve” over the year shows a development similar to that of general inflation. While egg production is not as energy-intensive as the cement, glass, or steel industries, the inflation rate for eggs has risen even more sharply, from about 2.7% in 2021 to a staggering 18.5% in 2022. Although the consumer price index showed a noticeable decrease over the course of 2023, egg inflation only marginally dropped to 15.6%.

Not all aspects of inflation are combatable, especially not with higher interest rates. Looking at egg prices in Europe, there is a wide spread in producer prices. Of the 20 countries examined in our “eggstra study”, eight are above the average price of 1.35 euros per 10-pack. Austria leads with 1.60 euros. Germany also ranks among the more expensive countries at 1.50 euros, along with Sweden, France, Italy, and Poland, and surprisingly, Estonia – despite Lithuania, located at the opposite end of the scale with just 0.99 cents, both being in the Baltics with similar structures.

Egg industry faces challenges

While the real estate industry is occupied with the prospect of improvement, challenges persist in the egg industry. By 2027, cage-keeping is likely to be banned in the EU, necessitating extensive investments.

Therefore, egg prices are not expected to decrease quickly or significantly, and egg inflation is likely to remain high. However, Easter will continue to come in the following years, and the Easter holidays will persist. The Easter Bunny will continue to be busy.

In this spirit, Happy Easter! We wish you lots of fun with our PYRAMID EGGSTRA. If you are interested not only in the egg industry but also in the development of the European logistics property markets, we recommend our PYRAMID MAP.