APF Holdings: Demand for barn-laid eggs in Latvia may double this year, egg prices to remain at last year's level


APF Holdings (hereinafter referred to as APF), which includes one of the largest Baltic egg producers, SIA Alūksnes putnu ferma, predicts a significant increase in demand for barn-laid eggs in Latvia this year. The demand could potentially double from around 36 million last year to 70-75 million this year. This projection considers the ongoing trend of supermarkets gradually discontinuing the sale of cage-laid eggs. APF also anticipates that egg prices in Latvia will remain stable, maintaining the level of 2023.    

"At present, the share of cage-laid eggs in certain supermarket chains still exceeds 50%, and gradually shifting this volume to barn-laid eggs could lead to a doubling of demand for Grade 2 (barn-laid) eggs in Latvia. This shift will provide a positive stimulus to the development of Latvia's egg producers. Currently, APF Holdings already produces over 60% of eggs as barn-laid eggs, and with the introduction of two new chicken facilities by the end of this year, the share of barn-laid eggs in our production will increase to 75%," says Hermanis Dovgijs, Member of the Board of AS APF Holdings.    

Overall, the market trend in Europe is favorable for Latvian egg producers, as egg producers in Europe have housed fewer laying hens in 2023 compared to 2021 and 2022. Therefore, in 2024, the total number of laying hens will be lower, resulting in fewer eggs.    

Last year was eventful for APF, as the company successfully carried out its initial public offering (IPO), raising €5.252 million in investments, including significant contributions from two Latvian pension funds. These new investments will allow APF to increase its annual egg production from the current approximately 115 million to as much as 180 million, while the number of laying hens will be raised to 665 thousand. Additionally, APF plans to start egg processing, supplementing its production with new processing equipment to create modern and healthy egg products. Construction of two new chicken facilities is planned to begin in spring, and a contract for the purchase of egg processing equipment has already been signed.    

In addition to the new product line of egg smoothies under the Fiteg2 brand introduced last year, APF also created the new product line "The Chick Game," offering a unique combination in the food production segment – boxed eggs and an educational mobile game called "The Chick Game," available for free download on Google Play and Apple Store. APF also received the FSCC food production safety certification again last year, and another significant event was the commissioning of new chicken facilities in Preiļi, which will enable APF to ensure its supply of laying hens. Since last year, APF eggs are not only available in Latvia but are also sold in supermarkets in Lithuania and Estonia.    

APF Holdings (NASDAQ: EGG) is a dynamic group of companies engaged in poultry farming, chicken egg production and trading, as well as gas and organic fertilizer production related to poultry farming processes. Our portfolio includes SIA Alūksnes putnu ferma (poultry farming and egg production), SIA APF Trading (wholesale trade in chicken eggs), SIA Oluksne (providing poultry farming and egg production services), SIA APF Energy (gas and organic fertilizer production), and SIA Preiļu putni (poultry farming and young chicken rearing). Founded in 2017, APF Holdings has become a leading player in the Baltic region's poultry and egg industry.