When egg prices fall below production costs, Vietnam responds not only by seeking new markets but also by accelerating industry transformation through innovation, diversification, and the creation of value-added products.

Vietnam’s poultry sector has been facing significant turbulence in recent months. On one hand, global geopolitical instability has disrupted supply chains and driven production costs higher. On the other hand, the domestic market has been flooded with supplies far exceeding consumer demand, putting downward pressure on prices. As a result, farmers are caught between rising production costs and declining selling prices that have fallen to unprofitable levels.

Egg Prices Drop Below Production Costs

The most concerning situation is being experienced by layer farmers. According to Việt Nam News (May 16), Nguyễn Thanh Sơn, President of the Vietnam Poultry Association, stated that conflicts in the Middle East have had a direct impact on the poultry sector. Logistics costs have surged sharply, compounded by increases in feed, raw material, and veterinary medicine prices of 15–20 percent. These conditions have squeezed profit margins and reduced the competitiveness of Vietnamese products in export markets.

Several companies that have traditionally relied on Middle Eastern markets have reportedly seen orders decline due to shipping costs that are no longer competitive. Some have even been forced to temporarily suspend exports altogether. Conditions are not much better in the domestic market. After enjoying favorable prices throughout the second half of 2025, poultry meat and egg prices began to decline in late March 2026.

Farm-gate egg prices currently range between VND 20,800–22,400 per kilogram (approximately IDR 14,100–15,200 per kilogram), while production costs stand at VND 25,600–27,200 per kilogram (around IDR 17,350–18,440 per kilogram), depending on farm scale and operational efficiency. In other words, every egg sold results in a loss for producers. Sơn predicts that unless the conflict eases, pressure on the livestock industry is likely to continue through the end of the year.

Preparing Various Strategies

The accumulation of these challenges has prompted industry players to redesign their business strategies. The association, together with major companies, has begun implementing a range of adaptive measures, focusing primarily on improving management efficiency and strengthening collaboration between farmers and suppliers of chicks and feed. This approach is expected to distribute risks more evenly and help ensure business sustainability amid ongoing uncertainty.

In addition to cost-efficiency measures, export market diversification has become another key strategy. As access to Middle Eastern markets becomes more difficult, companies are increasingly turning their attention toward other Asian countries. Several businesses are already preparing exports to Japan and Singapore. The entry of Vietnamese processed chicken products into Singapore this year marks a positive development and offers hope for broader growth in poultry product sales.

This positive trend is supported by first-quarter 2026 data, which show export growth to China, France, Singapore, Japan, the United States, and Cambodia, confirming that market diversification efforts are beginning to deliver results.

At the same time, major companies are encouraging a shift toward processing to achieve higher profit margins. Rather than relying solely on fresh products, businesses are diversifying into ready-to-eat eggs and processed chicken products to meet evolving consumer preferences while securing stronger profitability.

This article is an excerpt from the International section of Poultry Indonesia Magazine, June 2026 edition. Read the full story in Poultry Indonesia Magazine June 2026 edition. For subscriptions or further information, contact: https://wa.me/+6287780120754 or sirkulasipoultry@gmail.com.

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