EGG-NEWS summarizes and comments on data and trends in the monthly USDA Cage-Free Report, correlating the information posted weekly on the EGG-NEWS Egg Weekly Price and Inventory Report.
The USDA Cage-Free Report for the month of January 2021 released on February 1st 2021 documented a 0.6 percent increase in the population of hens producing under the Certified Organic seal to 17.3 million. Cage-free flocks increased by 3.8 percent to 65.0 million compared to December 2020. (rounded to 0.1 million). The respective numbers of hens in organic and cage-free flocks should reflect the realities of supply and demand in the market over successive quarters. It is evident that a noteworthy proportion of organic and cage-free eggs are down-priced to the generic category when comparing Nielsen retail sales data with potential production based on hen numbers.
Average flock production was lowered from 80.8 percent in December 2020 to 79.0 percent in January 2021 for both categories of non-caged hens reflecting older flocks, thereby altering the number of eggs produced weekly in each category, with increased availability of cage-free eggs and a decreased supply of organic eggs. Average flock production represents a balance between older flocks and the higher relative production from pullet chicks placed during October 2020 and the few molted flocks resuming production during the month.
|
Flock size Jan ‘21. Av. Q4
(million hens) 2020
|
Av. Q3
2020
|
Av. Q2
2020
|
Av. Q1
2020
|
|
Certified Organic 17.3 17.2
|
16.2
|
15.7
|
15.7
|
|
Cage-free hens 65.0 62.8
|
62.9
|
61.5
|
56.3
|
|
Total non-caged 82.3 80.0
|
79.1
|
77.2
|
72.0
|
|
Average weekly production (cases)
|
December
|
January 2021
|
|
Certified Organic
|
269,224
|
266,216 -1.1%
|
|
Cage-free
|
983,441
|
997,781 +1.4%
|
|
Total non-caged
|
1,252,665
|
1,263,997 +0.9%
|
|
Average Whole Contact Price Cage-Free Brown
|
$1.60/doz. ($1.51 Sept. to Dec. 2020)
|
|
Range:
|
$1.15 to $2.35/doz. ($0.45 up on the high end of the December 2020 range)
|
|
FOB Negotiated price, grade quality, nest-run. Loose
Price range $0.80 to $2.02 per dozen
|
Average Value of $1.71/doz. (was $1.38 Dec 2020.)
|
|
Average Advertised National Retail Price C-F, L, Brown
|
$2.42/doz. (was $2.46 December 2020)
|
|
USDA 6-Regions
|
High: NE $2.77/doz. $2.67 (NE)
Low: SC $2.22/doz. $2.42 (MW)
|
The wider range for both wholesale and retail prices this past month reflects the unexpected increase in demand and hence prices in mid-January.
Based on the importance of cage-free production, the USDA-AMS issues the report on volumes and prices at monthly intervals for the information of Industry stakeholders. There is some doubt as to the accuracy of the individual monthly flock numbers especially when reports show either no change in the cage-free flock for sequential months or a large difference usually after the end of a quarter as in this report. It is suggested that USDA consider a quarterly report with more accurate and consistent hen data to be more useful to the industry.
Subscribers are referred to weekly USDA wholesale and retail prices posted in the EGG-NEWS Egg Price and Inventory Report E-mailed each Friday. The previous Monthly Cage-Free Report is available under the STATISTICS Tab.