- Egg farms remain one of the least digitised parts of the value chain.
- AI could accelerate farm technology adoption
- The biggest opportunity lies in connecting technologies across the entire egg value chain
Demand for eggs is rising, driven by rising incomes, urbanisation and growing demand for affordable protein, according to Nan-Dirk Mulder, senior global specialist animal protein at Rabobank.
“Poultry meat and eggs are the fastest-growing protein categories, increasing by around 2% to 2.5% per year because they are affordable, widely accessible, and perceived as healthy sources of protein.”
These developments are pushing the industry to modernise, said Mulder.
“As people eat more eggs, they need higher standards, more food safety. To have that, you need modern production. The trend is modernisation.”
Mulder believes AI will accelerate the adoption of these technologies because it increases the value that can be extracted from data, making investments more attractive and affordable over time.
Farmers need to be convinced
Despite the industry’s broader transformation, Mulder said the farm itself remains one of the least digitised parts of the business.
The gap is particularly striking as other parts of the supply chain have been adopting sophisticated technologies to improve.
In grading and packing facilities, AI systems can inspect every egg, identify cracks and defects before automatically sorting eggs by size and quality.
Further up the chain, genetics companies are taking advanced data analytics and genomics tools to improve breeding performance.
At a farm level, technologies such as sensors, machine vision systems, automated monitoring and precision feeding tools are still in the early stages of adoption.
While these tools can help producers optimise feed use, monitor bird health and detect disease risks earlier, adoption remains constrained.
“It’s a big investment if you build all this technology. The farmers need to be convinced that this is an economically viable model,” said Mulder.
However, Mulder believes adoption will accelerate rapidly in the near future with the advent of AI and as the cost of technology decreases.
“My view is that its going to be fast. Artificial intelligence is the trigger that will accelerate the development. Because with artificial intelligence this new technology will become about a lot more affordable as it increases the value of the data being collected and you can do much more with the data than you could do in the past.”
Mulder added that generational change could also play a role in the modernisation of egg farms.
“You get more and more of the young generations coming into the business. They have grown up in an online world so if they become the managers in the business, they may change the model because they have been growing up online.”
A fragmented problem
Recently, Mulder was at the World Egg Conference in Singapore to unveil the latest report on the egg industry, The future of egg value chains: How data, digital tools, and connected systems will reshape the industry.
In the report, Mulder pointed out that the fragmentation of technology adoption across the egg value chain remains a challenge that industry has yet to overcome.
“One of the key messages from the report is that we are seeing a great deal of innovation across every stage of the egg value chain. This includes genetics, animal nutrition, farming, processing, and distribution to retail and foodservice channels.
“At each stage, companies are adopting new technologies and generating value. However, the real challenge, and the point I highlighted, is that much greater efficiency could be achieved if these technologies were connected across the entire value chain.”
He added that the industry’s biggest opportunity lies in connecting technologies across the egg value chain, as digital tools are currently being adopted at individual stages such as genetics, nutrition, farming and processing. Greater integration would allow data and insights to flow throughout the supply chain, improving efficiency and decision-making.
“In other words, the goal is to create a smart value chain rather than having isolated digital solutions at individual stages,” said Mulder.
Investment hotspots
According to Mulder, approximately 55% to 60% of this growth is occurring in Asia, particularly in the south, where increasing consumers’ purchasing power is increasing demand for animal protein.
This sizable growth naturally attracts investment capital and Mulder believes the south holds some of the strongest opportunities for investments.
Among the South East Asian markets, Mulder highlighted Vietnam as one of the most attractive for new investment given its strong economic growth, a relatively underdeveloped sector, insufficient cold chain infrastructure, and a welcoming attitude toward international investors.
He also pointed to the Philippines as a promising market due to rising egg consumption and increasing modernisation efforts.
