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Egg Exports

11/07/2020

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

 

USDA-FAS data collated by the USAPEEC, reflecting export volume and values for shell eggs and egg products are shown in the table below comparing the first nine months of 2020 with the corresponding period in 2019:-

 

PRODUCT

Jan.-Sept. 2019

Jan.-Sept. 2020

Difference

Shell Eggs

Volume (m. dozen)

103.7

110.5

+6.8 (+6.6%)

Value ($ million)

80.7

90.1

+9.4 (+11.6%)

Unit Value ($/dozen)

0.78

0.82

+0.04 (+5.1%)

Egg Products

Volume (metric tons)

22,503

27,982

 +5,479 (+24.3%)

Value ($ million)

70.8

76.7

+5.9 (+8.3%)

Unit Value ($/metric ton)

3,138

2,741

-397 (-12.7%)

 

U.S. SHELL EGG AND EGG PRODUCT EXPORTS DURING

JANUARY-SEPTEMBER 2019 COMPARED WITH JANUARY-SEPTEMBER 2020

 

Source USDA-FAS/USAPEEC

 

SHELL EGGS

Shell egg exports from the U.S. during the first nine months of 2020 increased by 6.6 percent in volume and 9.4 percent in total value compared to January-September 2019. Unit value was 5.1 percent higher or 4 cents per dozen for the comparison between 2020 and 2019. The top two importers, Hong Kong and Mexico combined, represented 68.4 percent of volume and 59.2 percent of total value.

 

Mexico was the leading importer of shell eggs in January-September 2020 with 39.5 million dozen representing 35.7 percent of volume and 28.9 percent of total value corresponding to a unit value of $0.66 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-September 2020 imports of shell eggs by Mexico increased by 108.9 percent in volume and 113 percent in value compared to January-September 2019. During September 2020 Mexico imported 4.9 million dozen from the U.S., up 28.9 percent from September 2019 and valued at $2.6 million with a low unit price of 53 cents per dozen, below the nest-run production cost

 

Hong Kong was the second-ranked importer of shell eggs in January-September 2020, with 36.1 million dozen representing 44.7 percent of volume and 30.2 percent of the $90.1 million total value of U.S. shipments of shell eggs. Average unit value was $0.76 cents per dozen, similar to the average prevailing nest-run USDA benchmark price during the first three quarters of 2020.

 

Canada was a distant third in rank as an importer during January-September 2020 with 13.7 million dozen representing 12.3 percent of volume and 13.9 percent of total value at $15.4 million with a unit value of $1.13 per dozen. Canada reduced volume by 57.8 percent during January-September 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. During August exports resumed with 3.2 million dozen shipped followed by 4.2 million dozen in September. This reflected increased 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 a national controlled marketing system that reduced farmers’ quotas.

The Caribbean Region represented 6.4 percent of export volume for January-September 2020. This region was up 29.2 percent in volume and 31.8 percent in total value, an obvious improvement compared with January-September 2019. The unit value of shell eggs exports to the Caribbean apparently averaged $1.23 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 8.8 million dozen during January-September 2020 valued at $6.7 million with a unit price of $0.76 per dozen. Volume and value in January-September 2020 were respectively higher by 87.2 percent and 63.4 percent compared to January-September 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 5.5 million dozen. Israel ranked 6th in August with 1.6 million dozen, possibly based on depletion of flocks infected with SE and ending use of obsolete facilities. Israel did not import any appreciable quantity of U.S. shell eggs in September.

 

EGG PRODUCTS

The total volume of exported egg products during January-September 2020 increased by 24.3 percent and total value was higher by 8.3 percent compared to January-September 2019. Unit value decreased by 12.7 percent to $2,741 per ton from $3,138 recorded for January-September 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 $23.8 million and a volume of 6,595 metric tons that represented 23.6 percent of the total U.S. exports of egg products, an increase of 5.9 percent compared with January-September 2019. The high unit value of $3,608 per metric ton compares with the average value for all exports of $2,741 or $2,473 excluding Japan. The discrepancy in unit price reflects the product mix including albumen. 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 first-ranked importer based on volume in January-September 2020 Mexico received 8,317 metric tons comprising 29.7 percent of export volume and 13.8 percent of value with a unit price of $2,034 per metric ton.

 

Canada represented a distant third in rank among importers purchasing 5,261 metric tons comprising 18.8 percent of volume and 13.4 percent of U.S. export value with a low unit price of $1,876 per metric ton. During January-September 2020 Canada increased volume by 27.1 percent andf value increased 13.4 percent compared to the first nine months of 2019. During September 2020 Canada increased volume by 60.8 percent compared to September 2019 to 751 metric tons.

 

Notable changes over the first nine months of 2020 included a 63.5 percent increase in exports to the UK+EU of 1,707 metric tons representing 6.1 percent of volume valued at $9.0 million and at a unit price of $5,272 per metric ton that appears disproportionately high.

 

South Korea increased imports 36.0 percent and value by 57.4 percent to $4.4 million. In September this nation imported 77 metric tons valued at $0.3 million with a unit price of $3,896 per metric ton.

 

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 embargos should not 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.