Egg prices hit record highs in Nepal as bird flu cuts flock and demand surges

The NPR 590 figure refers to the farm-gate support price rather than a retail price. At the retail level, OnlineKhabar reported that consumers were paying as much as NPR 30 per egg in some shops, despite the association’s notices continuing to list a consumer price of NPR 25 per egg.

Production shortfall drives prices up

The price increases come as Nepal’s poultry sector deals with substantial production losses associated with bird flu. According to figures cited by OnlineKhabar from the Department of Livestock Services, 835,563 birds were culled, while 1,225,536 eggs and 264,213 kg of poultry feed were destroyed as part of measures to control the disease.

The Nepal Layers Poultry Farmers Association has estimated that between 1 million and 1.2 million layer chickens were lost nationwide because of bird flu, according to statements reported by OnlineKhabar. A separate estimate published by Nepal News put the total loss at around 1.3 million layer chickens, attributing the losses to a combination of bird flu, extreme heat and rising production costs. The two figures therefore refer to somewhat different scopes and should not be treated as equivalent estimates of bird-flu losses alone.

The reduction in the layer population has also affected egg production. Association president Binod Pokharel said daily production had fallen from around 4–4.1 million eggs to approximately 2.9–3 million, leaving supply below market demand.

Nepal News separately reported that daily production had fallen from around 28,000 cartons to approximately 22,000 cartons.

The supply shortage has contributed to higher consumer prices. OnlineKhabar reported that retail consumers were paying up to NPR 30 per egg in some shops, although retail prices can vary according to location, egg size and the structure of the distribution chain.

Farmers still operating at a loss

Despite the repeated increases in egg prices, farmers have continued to report that prices do not fully cover production costs. The association puts the production cost at around NPR 19.12 per egg, equivalent to NPR 573.60 for a crate of 30 eggs.

On 11 August, for example, the support price for large eggs was NPR 545 per crate, below the reported production cost of NPR 573.60 per crate. Association chairperson Binod Pokharel said farmers were still unable to recover their production costs despite the price increase.

The financial pressure has also affected the structure of the sector. Business operators told Khabarhub that some farmers have started leaving the profession after failing to obtain prices sufficient to cover production costs. Declining production and recurring poultry diseases have also increased farmers’ reliance on bank loans, according to industry representatives cited by Khabarhub.

OnlineKhabar also reported that many poultry sheds remain empty following losses suffered during the bird-flu outbreak, while some farmers have left the business because of financial difficulties.

Outlook for the sector

Egg prices remain under pressure because production is currently below market demand. Industry representatives have attributed the latest increases primarily to declining production following bird-flu-related poultry losses.

The sector is also entering a period in which farmers expect stronger market conditions around the Dashain festival. However, the available sources do not provide sufficient evidence to state specifically that both Dashain and Tihar will cause a further increase in egg demand.

The current situation illustrates the vulnerability of Nepal’s layer sector to disease-related losses and other production pressures, while also highlighting the difficulties farmers face when farm-gate prices remain below reported production costs.