Japan has a very particular egg industry. In contrast to other surrounding countries, where the increase in the egg consumption is linked to favorable demographics, Japan has a mature market and, at same time, has increased its consumption in volume and value.

Egg production and consumption

Japan accounts to be among the top-10 egg producing countries and it is the second regarding the per capita egg consumption. The human population in the country has remained very similar in the last decade, while the egg production has expanded, and the laying inventory has decreased.

The increase in the production efficiency has allowed to raise the egg output with lower number of birds. The consolidation and technification of the sector have led to a decrease in the number of layer farms, while 10 companies account almost for the half of the local egg production.

The distribution of the egg production is not uniform around the country, being Kanto the largest egg producer, followed by Kyushu and Tohoku. These three provinces account for more than the half of the national egg production.

In addition, the country has a high per capita egg consumption (337 eggs) which continues to grow yearly. Egg consumption can be divided into half consumed as shell eggs and half in the form of egg products, which sets Japan apart of other developed countries, having the highest percentage of eggs eaten as egg products and a lot of dishes containing raw eggs.

Egg importation and exportation

Unlike other foods, where Japan has a lower self-sufficiency, in the case of eggs, the high domestic consumption is largely covered by the local production standing a self-sufficiency rate of around 95%. The remaining 5% is covered with importations, mainly from Brazil, US, China, and EU countries. Despite of this, Japan is also exporting shell eggs to other countries, being Hong Kong one of the main areas. The countries mentioned may depending on the temporary suspensions due to the Avian Influenza outbreaks in the origin countries.

Features of the egg market

Egg production in Japan is known for its high quality and hygiene standards, which may difficult other countries to export into Japan.

Most of the egg production is of white eggs (~60%), produced by caged laying hens. Major breeds are the White Leghorn and the Rhode Island Red. Yolk color pigmentation is a major egg quality parameter in the country, especially in southern provinces, demanding a more intense color, corresponding to a higher number in the Roche scale.

Egg prices have remained very stable in these past decades and compared to other fresh products; it is considered an affordable good that favors its growing demand. Prices raised over the usual during last spring season due to a limited supply linked to the culling of hens in the worse outbreak of avian influenza occurred in the last 5 years.

The Japanese egg industry is a very stable market that gives credit to value-added products. There is a high portion of eggs sold with the properties of functional eggs, sold at premium, which add extra profitability to the poultry companies, which include enhanced nutrients, like enriched eggs with vitamins (D, E and folic acid, among others), Omega 3 fatty acids, carotenes, lutein, iodine, which are regulated under the Japan Fair Trade Commission.

This mature market is very similar to the Western countries, where large companies, vertically integrated, are dominating and marketing the branded eggs directly to the big food retailers, while smaller egg producers sell them through major distributors and, in most cases, these eggs are not sold under a brand.

Current challenges and future perspectives

The regulations on manure disposal, outbreaks of infectious diseases, cost of feed ingredients and shipping crisis may difficult the results in the coming months and years, while future discussion points may include the production with enriched cages or aviary systems, considering the environmental and health factors that they imply, and the return of this kind of investments, considering egg prices.