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Egg Exports

08/04/2019

Export of Shell Eggs and Products January-June 2019.

USDA-FAS data collated by USAPEEC, reflecting export volume and values for shell eggs and egg products are shown in the table below comparing the first half of 2019 with the corresponding period in 2018:-

PRODUCT

Jan.-June 2018

Jan.-June 2019

Difference

Shell Eggs

     

Volume (m. dozen)

54.5

64.0

+9.5 (+17.4%)

Value ($ million)

66.4

51.6

-14.8 (-22.3%)

Unit Value ($/dozen)

1.22

0.81

-0.41 (-33.6%)

Egg Products

 

 

 

Volume (metric tons)

16,781

14,919

-1,862 (-11.1%)

Value ($ million)

61.0

46.5

-14.5 (-23.8%)

Unit Value ($/metric ton)

3,635

3,117

-518 (-14.3%)

U.S. SHELL EGG AND EGG PRODUCT EXPORTS DURING

JANUARY-JUNE 2019 COMPARED WITH 2018

Source USDA-FAS/USAPEEC

SHELL EGGS

Shell egg exports from the U.S. during the first half of 2019 increased by 17.4 percent in volume but declined 14.8 percent in total value compared to Jan.-June 2018. Unit value was lower by 33.6 percent or 41 cents per dozen for the six-month comparison between 2018 and 2019. The top two importing nations represented 74.7 percent of volume and 70.3 percent of total value.

Hong Kong was the leading importer of shell eggs for Jan.-June 2019, with 25.6 million dozen representing 40.0 percent of volume and 42.6 percent of the total value of U.S. shipments of shell eggs with an average unit value of $0.81 cents per dozen above the average USDA benchmark price for nest-run during the second quarter.

Canada was the 2nd-ranked importer during Jan.-May 2019 with 22.2 million dozen representing 34.7 percent of volume and 27.7 percent of total value at $14.3 million with a unit value of $0.64 per dozen. Shell eggs shipped to Canada represent the difference between domestic demand and production, limited by their national controlled marketing system

Mexico was a distant third in rank during Jan.-June 2019 with 12.0 percent of volume and 11.2 percent of total value, at a unit value of $0.86 per dozen. Prospects for additional sales will depend on acceptance of washed eggs held under refrigeration for retail sale, expected in September.

The Caribbean Region represented 5.8 percent of export volume for the first six months of 2019. This region was down 14.0 percent in volume and 49.5 percent in total value compared with 2018. The unit value of shell eggs exports to the Caribbean averaged $1.30 per dozen for Jan.-June 2019 ($1.93 over entire 2018) which appears high compared with the average export realization, warranting validation of USDA data or an investigation of the price discrepancy. It is possible that a proportion of shell eggs enumerated may have been fertile hatching eggs.

The Middle East Region imported 2.3 million dozen during the first six months of 2019 valued at $2.2 million with a unit price of $0.96 per dozen. Volume and value were respectively lower by 30.3 percent and 31.3 percent compared with the corresponding period in 2018. Israel emerged as an importer at the end of 2018 attributed to depletion of domestic flocks due to SE. Southern E.U. nations have a transport advantage over the U.S in this market.

EGG PRODUCTS

The total volume of exported egg products during the first half of 2019 decreased by 11.1 percent and total value was lower by 23.8 percent compared to the same period in 2018. Unit value decreased by 14.3 percent to $3,117 per ton from $3,636 obtained during Jan.-June 2018. This decline reflected the relationship between World supply and demand.

During Jan.-June 2019, 1st-ranked Japan represented 27.2 percent of the total U.S. export volume with 4,061 m. tons, a decrease of 34.8 percent compared with the first six months of 2018. Unit value of $4088 per m. ton reflects the product mix including yolks.

Mexico was the second ranked importer during Jan.-June 2019 receiving 3,008 metric tons comprising 20.2 percent of volume and 15.2 percent of value exported with a unit price of $2,360 per metric ton

Canada represented the 3rd rank among importers purchasing 2,839 m. tons representing 19.0 percent of volume and 13.1 percent of value ($6.1 million) exported with a unit price of $2,149 per m. ton. During the six-month period in 2019 Canada increased volume by 25.2 percent and value by 12.9 percent compared to the corresponding period in 2018.

During the first six months of 2019, 4th-ranked E.U-28 imported 550 m. tons of egg products, representing 3.7 percent of volume and 7.3 percent of value shipped during Jan.-June 2019 at an apparently low price of $618 per m. suggesting a high proportion of dried product.

The E.U. and S. Korea reduced volume of egg liquid imports by 52.2 and 37.3 percent respectively for the first half of 2019 compared with 2018.

COMMENTS

Successful conclusion of negotiations to replace NAFTA led to the trilateral USMCA, announced on September 30th 2018. The agreement will have to be ratified by the legislatures of Canada and the U.S. Exports of shell eggs and egg products to our neighbors were valued at $74.7 million for 2017 and $89.7 million for 2018 and $33.3 million over the first six months of 2019.

Prospects for long-term exports of shell eggs will be limited by the willingness of importers to accept the World Organization for Animal Health (OIE) principle of regionalization in the event of exotic Newcastle disease or isolation of either H5 or H7 avian influenza, irrespective of pathogenicity. Most importing nations, with the noted exception of China, are now applying regionalization and permitting imports on a county or state-exclusion basis following H5 or H7 AI infection.

The sixteen-month ongoing series of incident cases of END involving approximately 480 backyard flocks, predominantly fighting cocks, has apparently ended. Extension of the infection to four commercial farms in Southern California in late 2018 did not impact exports since importers are complying with the OIE principle of regionalization.

Generally pasteurized egg products should not be subject to any embargo imposed following reports of AI or Newcastle disease.