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Export of Shell Eggs and Products, January-August 2020.

10/10/2020

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 eight months of 2020 with the corresponding period in 2019:-

PRODUCT

Jan.-Aug. 2019

Jan.-Aug. 2020

Difference

Shell Eggs

Volume (m. dozen)

90.4

94.9

+4.5 (+5.0%)

Value ($ million)

70.1

79.1

+9.0 (+12.8%)

Unit Value ($/dozen)

0.78

0.83

+0.05 (+6.4%)

Egg Products

Volume (metric tons)

20,088

25,784

 +5,696 (+28.4%)

Value ($ million)

63.9

69.8

+5.9 (+9.2%)

Unit Value ($/metric ton)

3,181

2,707

-474 (-14.9%)

 

U.S. SHELL EGG AND EGG PRODUCT EXPORTS DURING

JANUARY-AUGUST 2019 COMPARED WITH JANUARY-AUGUST 2020

Source USDA-FAS/USAPEEC

 

SHELL EGGS

Shell egg exports from the U.S. during the first eight months of 2020 increased by 5.0 percent in volume and 12.8 percent in total value compared to January-August 2019. Unit value was 6.4 percent higher or 5 cents per dozen for the comparison between 2020 and 2019. The top two importers, Hong Kong and Mexico combined, represented 70.2 percent of volume and 60.3 percent of total value.

 

Mexico was the leading importer of shell eggs in January-August 2020 with 34.6 million dozen representing 36.5 percent of volume and 29.6 percent of total value corresponding to a unit value of $0.68 per dozen. Prospects for additional sales will depend on continued acceptance of washed eggs held under refrigeration for retail sale, first announced in September 2018 but implemented in late 2019. For January-August 2020 imports of shell eggs by Mexico increased by 126 percent in volume and 144 percent in value compared to January-August 2019.

 

Hong Kong was the second-ranked importer of shell eggs in January-August 2020, with 35.8 million dozen representing 33.7 percent of volume and 30.7 percent of the $79.1 million total value of U.S. shipments of shell eggs. Average unit value was $0.76 cents per dozen, corresponding to the average prevailing nest-run USDA benchmark price during the eight months of 2020. 

 

Canada was a distant third in rank as an importer during January-July 2020 with 9.5 million dozen representing 10.0 percent of volume and 15.3 percent of total value at $12.1 million with a unit value of $1.27 per dozen. Canada reduced volume by 66.2 percent during January-August 2020 compared to 2019. With the advent of COVID-19, April consignments of shell eggs were down 80.6 percent from 2019 and in May, June and July exports were negligible. This reflected decreased demand from the food service sector paralleling the situation in the U.S. Shell eggs shipped to Canada represent the difference between domestic demand and production, limited by their national controlled marketing system that has reduced farmers’ quotas. August imports attained to 3.2 million dozen as domestic demand increased.

 

The Caribbean Region represented 6.2 percent of export volume for January-August 2020. This region was up 28.2 percent in volume and 28.3 percent in total value, an obvious improvement compared with January-August 2019. The unit value of shell eggs exports to the Caribbean apparently averaged $1.30 per dozen, ($1.39 during 2019). This is disproportionately high compared with the average export realization, most probably because a proportion of shell eggs enumerated may have been either fertile hatching eggs or enriched specialty eggs.

 

The Middle East Region imported 8.4 million dozen during January-August 2020 valued at $6.4 million with a unit price of $0.76 per dozen. Volume and value in January-August 2020 were respectively higher by 105 percent and 77.8 percent compared to January-August 2019. Southern E.U. nations in addition to India and Ukraine have a competitive transport advantage over the U.S in this market. Within the Middle East region the UAE ranked as the 4th largest importer from the U.S. with a volume of 2.4 million dozen. Israel ranked 6th with 1.6 million dozen, possibly based on depletion of flocks infected with SE and ending use of obsolete facilities. Collectively these nations imported shell eggs to the value of $5.5 million during January-August of 2020.

 

EGG PRODUCTS

The total volume of exported egg products during January-August 2020 increased by 28.4 percent and total value was higher by 9.2 percent compared to January-August 2019. Unit value decreased by 14.9 percent to $2,707 per ton from $3,181 recorded for January-August 2019. This decline reflects the relationship between World supply and demand with Ukraine and India as significant exporters.

 

Japan was the leading importer based on a value of $22.3 million with a volume of 6,152 metric tons that represented 23.9 percent of the total U.S. exports of egg products, an increase of 20.0 percent compared with January-August 2019. The high unit value of $3,625 per metric ton compares with the average value for all exports of $2,707 or $2,420 excluding Japan. The discrepancy in unit price reflects the product mix including yolks. With conclusion of a bilateral trade agreement the U.S. will no longer be at a competitive disadvantage with respect to the E.U.

 

Mexico continued as the second-ranked importer based on value in January-August 2020 receiving 7,993 metric tons comprising 31.0 percent of export volume and 21.1 percent of value with a unit price of $1,839 per metric ton.

 

Canada represented a distant third in rank among importers purchasing 4,509 metric tons comprising 17.5 percent of volume and 12.8 percent of value with a low unit price of $1,974 per metric ton. During January-August 2020 Canada increased volume by 22.7 percent but value increased 14.1 percent compared to the first eight months of 2019. During August 2020 Canada increased volume by 80.4 percent to 336 metric tons.

 

Notable changes over the first eight months of 2020 included an 84 percent increase in exports to the UK+EU of 1,525 metric tons representing 5.9 percent of volume valued at $7.1 million and at a unit price of $4,656 per metric ton.

 

South Korea increased imports 58.4 percent and value by 58.7 percent to $4.1 million. In August this nation imported 77 metric tons valued at $0.2 million with a unit price of $2,597 per metric ton.

 

Saudi Arabia imported 34 metric tons of egg products valued at $0.2 million representing a significant increase 0ver August 2019.

 

COMMENTS

Successful conclusion of negotiations to replace NAFTA led to the trilateral USMCA, announced on September 30th 2018. The subsequently-modified agreement was ratified by the Parliament of Canada, 17 months after signing the basic trade pact and only after adoption by the U.S. Congress and the Senate of Mexico in 2019. Exports of shell eggs and egg products to our neighbors were valued at $74.7 million in 2017, $89.7 million in 2018 and $80.8 million in 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 are now applying regionalization and permitting imports on a county or state-exclusion basis following H5 or H7 AI infection.

 

Both the END outbreak in backyard flocks in southern California and the localized and limited LPAI outbreaks and one HPAI isolation in turkey flocks in the Carolinas are now officially over. In accordance with OIE principles no embargos should be imposed on either the states or counties affected.

 

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