New Zealand’s largest egg producer says it will continue to expand its business despite the rising production costs and regulatory changes that have driven some from the industry.
Zeagold Nutrition CEO John McKay said the egg shortage that has plagued NZ in recent months is the result of regulatory changes and low profitability in egg production, but is “likely to be a short-term issue”.
There are rising costs in the industry – particularly feed for hens – but he remains confident there is a strong future for egg production in the country.
“Right now the cost of feed is at a record high – 60% of the total cost of producing an egg is the cost of the feed,” McKay said.
“We are also grappling with higher operational costs, with increased costs across shipping, transport, wages and packaging.”
Zeagold has just developed a large barn-egg farm in the North Waikato region, and is in the process of opening a large free-range farm in the South Waikato region.
“We are excited about the future of the industry, and that is why we continue to invest in new farms and utilise the latest technology and genetics from around the world so we can keep producing the best eggs possible,” McKay said.
According to the Egg Producers Federation NZ, covid has pushed some farmers out of the industry, particularly free-range farmers, and others had to consider their future because of new regulations that ban cage farming. The changes were agreed to by the federation in 2012, at a time when 84% of NZ’s eggs were produced by caged hens.
At its peak, NZ had 4.2 million commercial laying hens but that figure dropped to 3.55 million prior to Christmas, which has contributed to the egg shortage.
Zeagold operates nine farms throughout the country. Its 1.16 million laying hens produce about 540,000 dozen eggs a week, which are sold domestically under the Woodland and Farmer Brown brands.
McKay said the move to ban cage farming had been a “phased process” over six years for Zeagold, which lessened the impact.
“During this time of transition, we have invested in other production methods and built new farms to continue to supply eggs to the New Zealand market,” he said.
Zeagold takes a balanced approach to egg production, using colony, barn and free range methods across its farms, he said.
Two major supermarket chains have signalled they will stop selling colony eggs from 2025/26, but McKay said it is important consumers retain the option to purchase the product.
“We know that eggs are a highly nutritional, natural product and a great source of protein. For many New Zealanders, especially with the high cost of living we are currently experiencing, the price premium of a free-range egg is not an option,” he said.
“The cost of a free-range egg is around 40% higher than a colony egg. Many New Zealanders want and need to be able to provide a nutritious meal as cost-effectively as possible for their families.
“Colony eggs remain an important part of our business – we believe it is important to offer consumers a choice of eggs across various production methods.”
McKay said NZ has an advantage over its rivals because of its significant biosecurity and food safety advantages. The country has so far avoided the salmonella and avian flu outbreaks that have caused issues for international egg production recently.
“Like all agricultural sectors, we need to continue to improve our biosecurity practices and protect our borders, so we maintain the privileged position we have here in New Zealand,” McKay said.
“This is critical for the future of egg production in New Zealand, and it is something we will continue to work on proactively with the Ministry for Primary Industries, both as a company and through the Egg Producers Federation.”
