Brace for higher egg prices [WATCH]

Malaysian consumers are set to face higher egg prices over the next three to six months due to supply constraints, weather disruptions, and farm shutdowns, according to Hong Leong Investment Bank analyst Jonathan Ooi. Grade C egg prices recovered from 20 sen in April and May to around 40 sen in August, driven by Perak farm closures and rising feed costs.

QL Resources Bhd, a major poultry player, anticipates the trend to continue, although margins may face pressure. Corn and soybean meal costs have risen by over 10% year-to-date, providing only a two-month buffer. El Nino conditions are adding modest headwinds, with heat stress lowering layer hen productivity, especially at open-air farms.

QL aims to increase branded eggs to 25% of egg revenue within five years. The retail premium for branded eggs is significant, with branded trays costing about 80 sen per egg compared to 40 sen for standard unbranded ones. The industry has experienced sharp cycles between oversupply and shortage, with oversupply driven by the removal of the government egg subsidy in August 2025, leading to weak prices and depressed margins.

Egg production in Malaysia reached about 16.7 billion eggs, exceeding annual consumption by around 5.1 billion eggs. PublicInvest anticipates a gradual recovery phase, supported by farm exits, lower production, and relatively inelastic demand.