Cracking the Mystery: Why Sydney is Facing an Egg Shortage

Sydney, like much of Australia, is currently experiencing a significant egg shortage. This scarcity has led to empty supermarket shelves, purchasing limits, and increased prices, impacting both households and businesses. Several factors contribute to this shortage:

1. Avian Influenza Outbreaks

In mid-2024, Australia faced its largest bird flu outbreaks, notably the H7N8 strain in New South Wales and a different H7 strain in Victoria. These outbreaks necessitated the culling of approximately 1.8 million birds to prevent further spread, drastically reducing the egg-laying population. The loss of over 10% of laying hens has had a profound impact on egg availability nationwide. 

2. High Seasonal Demand

The summer months typically see an uptick in egg consumption due to festive seasons and holiday baking. This increased demand, combined with the reduced supply from avian influenza, has exacerbated the shortage, making it challenging for producers to meet consumer needs. 

3. Transition Away from Caged Eggs

Australia is undergoing a significant shift in egg production practices, moving from caged to barn-laid and free-range systems. This transition requires substantial infrastructure changes and time, temporarily reducing the number of eggs produced during the conversion period. 

4. Ongoing Supply Chain Challenges

The combination of these factors has led major supermarkets, including Woolworths and Coles, to implement purchasing limits to manage the limited supply. Despite efforts to stabilize the market, the shortage persists, with industry experts predicting it could continue for several more years. 

5. Rising Prices

The scarcity has naturally led to increased egg prices. Between June and December of the previous year, the real price index of eggs rose by nearly 10%. This surge adds to the cost-of-living pressures faced by many Australians. 

Outlook

The egg industry is actively working to recover, but repopulating flocks and completing infrastructure upgrades are time-consuming processes. Consequently, consumers may continue to experience limited availability and higher prices in the foreseeable future. 

In summary, the egg shortage in Sydney and across Australia results from a confluence of avian influenza outbreaks, increased seasonal demand, industry transitions, and supply chain challenges. While efforts are underway to address these issues, it may take several years before the market fully stabilizes.

Padstow Food Service continues to place weekly egg orders in the hope of securing stock. However, with large retailers like Woolworths and Coles receiving priority, we have been unable to meet our customers' needs.

For any inquiries, please call us at 02 9792 2170 or email sales@padstowfoodservice.com.au.