Bhutan egg prices climb amid shortage as school program expands

A nutrition push meets a tight market

Egg prices are climbing across Bhutan as a national shortage intersects with the rollout of a school nutrition effort that guarantees one egg per child. The One Child, One Egg initiative began in February and now serves 31,579 students through 345 schools, including 290 primary schools, five special education institutes, and 50 extended classrooms. The program has already delivered about 2.4 million eggs, a rapid ramp up that has tightened supply for retailers and restaurants even as families continue to buy eggs for home use.

Wholesale prices have moved swiftly. A carton that cost about Nu 1,900 in February is now around Nu 2,300. Retail price pressure is visible in the capital, where a tray that sold for roughly Nu 280 in February now costs about Nu 370. The currency Nu refers to the Bhutanese ngultrum (Nu). Grocers say they are having trouble sourcing stock at any price, which has left some shelves empty for days at a time.

Farmers are racing to keep up. In Paro, producer Gyeltshen operates two farms with about 3,500 chickens and supplies both local and Thimphu outlets, including 8Eleven and Junction Mart. He sends roughly 30 cartons each month to 8Eleven alone, with each carton holding seven trays. Shop owners describe higher purchase costs and, in some cases, a drop in egg quality as smaller or thinner shelled eggs reach the market under heavy demand. The squeeze has not brought the market to a standstill, yet the direction of prices has many anticipating a harder stretch ahead.

What is driving the shortage?

The first driver is straightforward demand. A guaranteed egg for every child in the program, five school days a week, requires steady volume. Officials project the first year of the pilot will need about 8.4 million eggs, at an estimated Nu 101 million in funding. For 186 contracted poultry farmers and 78 private vendors, the initiative offers a clear buyer at a minimum of Nu 10 per egg. That stability is a benefit for producers, but it also concentrates a larger share of total output into school deliveries on a reliable schedule, leaving fewer eggs to chase fluctuating prices in regular markets.

Weather is adding stress. Layer flocks struggle when temperatures climb, which cuts laying rates and can raise mortality. In recent months, heat in border dzongkhags pushed above 35 degrees Celsius. One supplier in Pemagatshel, Namkha, reported the summer heat killed 50 to 60 birds in his flock of about 1,900. Farmers also point to higher input costs, including a rise in Karma Feed prices, which increases the cost of each egg brought to market. When production costs move higher, the resulting price pressure tends to show up at both wholesale and retail levels.

Distribution patterns have also shifted. Producers follow price signals, and some farmers have been sending eggs to districts where demand and prices are currently stronger. This can leave home districts short. Namkha said that while monthly school deliveries in Pemagatshel have continued, the outflow of eggs to other areas is causing a local squeeze. In Wangdue, a shopkeeper in Changyuel described five straight days without eggs to sell. When supplies move along the most profitable routes, small grocers and consumers in less connected markets feel the gap first.

How prices are moving across Bhutan

The market is adjusting in fits and starts. In Thimphu, retail trays now near Nu 370, up from about Nu 280 in February. In Paro and Pemagatshel, wholesale rates have risen from the low Nu 2,000s per carton to about Nu 2,300 to Nu 2,400, based on farmer and shopkeeper accounts. That is a meaningful jump in a short window, and it reflects both stronger demand and stress on supply.

Gyeltshen, a poultry farmer in Paro who supplies local and Thimphu stores, warned that tight supply could push prices higher if current conditions persist.

Currently, I am able to meet the demand, but my stock does not even last a week. If the current situation continues, the price of eggs could shoot up to Nu 3,000.

Yeshi Choden, owner of Paro Canteen, described the squeeze from the retail side. She saw her wholesale cost rise from about Nu 1,950 per carton in February to Nu 2,400 now, while her retail price per tray increased from Nu 280 to Nu 370 in the same period.

We are buying eggs at higher rates despite the low supply and strong market demand. The quality of eggs has also deteriorated compared to before, as demand is high.

In Pemagatshel, farmer Namkha said heat and costs have made the business tougher, even as he keeps up monthly school deliveries.

I also deliver eggs to schools as part of the One Child, One Egg initiative in Pemagatshel. Since deliveries are only once a month, I have not faced a severe shortage in meeting local demand. However, because other poultry farmers are sending their eggs to other districts, there is now a shortage in my own district.

A grocery vendor in Changyuel, Wangdue, described an empty shelf problem that has grown acute in recent days.

We are struggling to get eggs; there is a severe shortage, and prices have also shot up. Where are the eggs?

Schools or markets: competing demands

The school program pays a minimum of Nu 10 per egg and offers reliable demand. In a period of fast moving market prices, that stability can collide with incentives that pull eggs toward spot buyers at higher rates. Officials from Bhutan Livestock Development Corporation Limited say they are talking with both farmers and vendors to keep school deliveries on track even as market prices climb.

A BLDC official explained why continued school deliveries matter for both nutrition goals and market balance.

We have been educating farmers and vendors about market dynamics and convincing them to continue supplying eggs to schools, as this initiative provides a steady market for them. Unlike the fluctuating market prices, if farmers send eggs only to the market and not to schools, there will obviously be enough eggs in the market, which will cause prices to decrease again.

That reasoning underlines a delicate balance. The school channel secures nutrition for children and a firm buyer for producers. If eggs are diverted entirely to retail, short term market prices may ease for shoppers, but school kitchens would face shortages. Aligning incentives requires careful coordination, transparent pricing, and predictable logistics so that producers see the value of standing by school contracts even when spot prices spike.

How global shocks shape local shelves

Egg markets worldwide have been unsettled by disease and costs. In the United States, a prolonged outbreak of highly pathogenic avian influenza has led to the loss or culling of millions of layers in multiple waves since 2022. In the most recent surge, more than 20 million egg laying chickens died or were culled in one quarter, according to reports compiled from federal data. Retail prices jumped and some restaurant chains added temporary surcharges to dishes that use eggs as a core ingredient, a pattern echoed by independent eateries that have adopted similar upcharges to stay afloat.

USDA forecasters expect egg prices to remain volatile. The agency raised its 2025 outlook for egg prices sharply, noting the impact of bird flu on the national layer flock and the lag between wholesale and retail price movements. The ripple effects reach beyond US borders. Indonesia offered to export up to 1.6 million eggs per month to help fill the US gap, highlighting how shortfalls in one large market can draw supply from other producers. That same weekly industry reporting points to high feed costs as a persistent challenge for poultry, with corn and soybean prices, energy, and transport shaping the final cost of a dozen eggs.

Other countries have cushioned consumers through different market structures. An opinion analysis in Canada has argued that the country’s quota based supply management, combined with geographic dispersion of farms, helped reduce price swings compared to the United States during recent bird flu waves. Canada still saw higher prices, but far fewer empty shelves. Every system has trade offs, yet the comparison illustrates how coordinated production, transparent contracts, and rapid disease response can stabilize a sensitive protein market.

Bhutan is not facing an avian flu crisis of that scale, yet global conditions help explain why inputs cost more and why shifting international demand can strain small domestic markets. When feed prices rise and transport remains expensive, producers pass some of those costs along. When large food importers pull in supply from abroad, nearby countries sometimes face tighter trade flows. Local supply and demand set Bhutanese prices, but external shocks can still nudge the market in the background.

Possible relief and actions under discussion

There is no single fix, but several practical steps could ease the pinch while keeping school kitchens stocked. The first priority is to hold the line on consistent deliveries to schools so that children receive the promised egg. That will likely require continued outreach to producers and vendors, predictable payment schedules, and possibly short term support where transport or logistics costs are rising faster than contracted rates.

Short term stabilizers

Authorities and industry can target immediate pressure points. Better route planning and pooling deliveries across nearby schools can reduce per unit transport expenses. Clear schedules that space out school deliveries within a month can help farmers plan flock management and inventory for both channels. If retail prices surge well above the minimum school rate, temporary top ups or fuel support for school delivery routes could keep the incentive aligned without rewriting core contracts. Where shops have gone days without stock, district officials and cooperatives can map gaps and prioritize supply runs that restore a basic level of availability in underserved local markets.

Keeping farms productive through the heat

Heat stress reduces laying rates and raises mortality risk, especially in lower elevation or border districts. Simple changes can blunt that stress. Shade nets, reliable ventilation, foggers or misting lines, frequent cool water, and adjustments to stocking density can improve bird comfort. Scheduling feed for cooler morning and evening hours can help birds maintain intake when midday heat suppresses appetite. Training and small grants for low cost cooling upgrades may deliver quick gains in output and bird welfare during the hottest months.

Inputs, feed costs, and finance

Feed is the largest single cost in egg production. Group purchases, better storage, and clear feed quality standards can help farmers stretch inputs. Technical advice on ration formulation and timing can prevent waste and preserve laying performance even as costs rise. Credit that aligns with flock cycles and school delivery schedules can smooth cash flow and keep producers from cutting corners when prices are highest. Where feasible, targeted and time bound support for key inputs can prevent a slide in production that would take months to reverse.

Data and coordination

Real time visibility into who produces, who delivers to schools, and which shops are out of stock can improve allocation. District level dashboards that track deliveries, backlogs, and price movements would let coordinators nudge supply toward the thinnest markets. The goal is simple: avoid extreme pockets of scarcity and maintain confidence that eggs will be available without hoarding or panic buying.

What shoppers and small businesses can do now

Consumers and food businesses are adapting too. Restaurants that rely on eggs for breakfast menus can work with suppliers on standing orders and consider rotating specials that use fewer eggs until supply improves. Where upcharges are necessary to cover costs, clear and temporary pricing can preserve customer trust. Bakers can examine recipes for opportunities to reduce egg usage or substitute in partial batches without compromising quality.

Households can plan purchases to avoid waste. Buying smaller quantities more frequently, storing eggs in a cool part of the refrigerator, and rotating older eggs to the front of the carton will reduce spoilage. Choosing alternative proteins for some meals can keep budgets in check while prices are high. Most of all, avoiding large speculative buys leaves more eggs available for neighbors and helps temper price spikes in tight local markets.

Key Points

• Egg prices in Bhutan have risen quickly, with Thimphu retail trays around Nu 370 compared to about Nu 280 in February.
• The One Child, One Egg program serves 31,579 students across 345 schools and has delivered about 2.4 million eggs to date.
• Wholesale prices climbed from about Nu 1,900 per carton in February to around Nu 2,300 to Nu 2,400, squeezing small grocers.
• Farmers cite heat stress on flocks, higher feed costs, and eggs flowing to higher paying districts as key pressures on supply.
• Some stores report days without stock, while producers warn prices could approach Nu 3,000 per carton if conditions persist.
• BLDC is encouraging producers and vendors to keep school deliveries on schedule, noting the program offers a stable market at Nu 10 per egg.
• Global factors, including avian flu outbreaks and high feed costs, are keeping international egg markets tight and input costs elevated.
• Short term relief options include better route planning for school deliveries, targeted support for transport costs, and low cost cooling for layer houses.
• Restaurants and households are adjusting by planning purchases, reducing waste, and temporarily shifting menus to manage higher costs.
• Officials project the school pilot will require about 8.4 million eggs in its first year, at an estimated cost of Nu 101 million.