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Egg Exports

11/06/2022

Export of Shell Eggs and Products, January-September 2022.

Exports of shell eggs since March have been constrained by availability due to progressive and cumulative depletion of 36 million hens to date as a result of HPAI. Sharp rises in price as a result of supply-demand disequilibrium have made U.S. export prices uncompetitive as denoted by lower volumes and values over successive months. Egg products have also been impacted but to a lesser extent than shell eggs.

 

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 nine months of 2021 with 2022:-

 

PRODUCT

Jan.-Sept. 2021

Jan.-Sept. 2022

Difference

Shell Eggs

Volume (m. dozen)

158.2

52.5

 -105.7 (-66.8%)

Value ($ million)

159.6

91.4

-68.2 (-42.7%)

Unit Value ($/dozen)

1.01

1.74

+0.73 (+72.3%)

Egg Products

Volume (metric tons)

27,217

18,416

 -8,801 (-32.3%)

Value ($ million)

81.1

91.4

+10.3 (+12.7%)

Unit Value ($/metric ton)

2,980

4,963

+1,983 (+66.5%)

U.S. EXPORTS OF SHELL EGG AND EGG PRODUCTS DURING

 

JANUARY-SEPTEMBER 2022 COMPARED WITH 2021

 

SHELL EGGS

Shell egg exports from the U.S. during the first nine months of 2022 decreased by 66.8 percent in volume and 42.7 percent in total value compared to 2021. Unit value was 72.3 cents higher to $1.74 per dozen for the nine-month period in 2022 compared to January-September 2021. The top two importers were Canada (38.6 percent of volume) and Hong Kong (26.8 percent), collectively represented 65.5 percent of volume and 64.7 percent of total value.

 

During September the volume of shell egg exports declined 70.2 percent from September 2021 to 6.5 million dozen. Value declined 23.6 percent to $17.1 million attributed to high domestic price and reduced availability as a result of depopulation of 34 million hens due to HPAI from late February through September.

 

Canada was the leading importer of shell eggs in January-September 2022, with 20.3 million dozen representing 38.7 percent of volume and 46.2 percent of the $91.4 million total value of U.S. shipments of shell eggs. Unit price was $2.07 per dozen compared to $1.83 per dozen for the previous month.

 

During September Canada imported 4.8 million dozen up 108 percent over September 2021, with a corresponding 456 percent increase in value to $13.9 million with a unit price of $2.89 per dozen. The sharp increase in imports by Canada is attributed to increased demand and depletion of some flocks due to HPAI. The controlled supply situation in Canada inhibits flexibility necessitating fluctuating imports from the U.S.

 

Hong Kong was the second-ranked importer of U.S. shell eggs during the first nine months of 2022. The 14.1 million dozen shipped represented 32.3 percent of volume and 18.5 percent of value. Unit price was $1.20 per dozen below the average prevailing nest-run USDA benchmark price of $1.96* over the first nine months of 2022 indicating the loss in revenue experienced by shippers presumably operating under contract. During September, Hong Kong imported 0.6 million dozen shell eggs valued at $0.9 million down 84.2 percent in volume and down 75.0 percent in value from September 2021 at a unit price of $1.50 per dozen. During 2021 Hong Kong imported 53.8 million dozen valued at $48.2 million

 

Mexico was the third-ranked importer of shell eggs during January-September 2022 with 3.8 million dozen representing 7.2 percent of volume and 4.8 percent of total value corresponding to a unit value of $1.16 per dozen, 40.8 percent below the U.S. benchmark average of $1.96 per dozen for the nine months. During September exports to Mexico were negligible. For 2021 Mexico was second-ranked in shell egg exports receiving 52.2 million dozen valued at $41.9 million.

 

Bahamas emerged as a significant importer of eggs in September with 3.8 million dozen valued at $6.7 million. The reason for demand should be investigated with special emphasis on undiagnosed or undeclared HPAI in this or other Caribbean nations.

 

For January-September 2022 the remaining nations or regions of importance were the Caribbean other than Bahamas (4.0 million dozen) and the Middle East (2.6 million dozen with Israel comprising 77 percent due to flock depletion caused by SE). Other importing nations collectively received 8.5 million dozen representing 16.2 percent of volume.

* USDA Benchmark nest-run unit prices: January, $1.05 per dozen; February, $1.35; March, $1.58; April, $2.36; May, $2.09; June, $1.91; July, $2.71, August, $1.91 and September $2.70.

 

EGG PRODUCTS

The total volume of exported egg products during January-September 2022 decreased by 32.3 percent to 18,416 metric tons compared to the corresponding months in 2021. Total value of $91.4 million was higher by 10.3 percent compared to the first nine months of 2021. Unit value increased by 66.5 percent to $4,963 per ton, up from the $2,981 received during January-September 2021. For 2021 the U.S. exported 35,068 metric tons of egg products valued at $109.1 million with a unit price of $3,108 per metric ton

 

During September 2022 the U.S. exported 1,656 metric tons, down 47.2 percent in volume and 14.3 percent in value compared to September 2021. The difference of $1,948 per ton in unit price reflects the composition of exports and the relationship between World supply and demand. Ukraine is now restrained in production but India was a significant exporter during the month..

 

 Japan was the leading importer from the U.S. for January-September 2022 based on a value of $31.5 million and a volume of 6,806 metric tons that represented 36.9 percent of the total value of U.S. exports of egg products, a decrease of 3.9 percent in value compared with January-September 2021. The unit value of $4,628 per metric ton compares with the average value for U.S. exports of all egg products with a unit value of $4,963. With conclusion of a bilateral trade agreement the U.S. is no longer at a competitive disadvantage with respect to the E.U. In 2021 Japan imported 11,796 metric tons of egg products from the U.S., 31.6 percent more than in 2020.

 

Canada was second in rank by volume and third in value among importers, purchasing 4,143 metric tons in January-September 2022 comprising 22.5 percent of volume and 10.9 percent of value with a unit price of $3,282 per metric ton. During September 2022 Canada was the fifth-ranked importer by volume receiving 136 metric tons representing 8.2 percent of volume and 4.8 percent of value. Volume was 47.2 percent lower and value was 69.2 percent lower compared to September 2021. Volumes reflect restoration of the institutional and food service sectors and availability of domestic product in Canada.

 

Mexico was third-ranked as an importer of egg products over January-September 2022 receiving 2,293 metric tons from the U.S. representing 12.5 percent of volume and 11.7 percent of value with a unit price of $4,666 per metric ton. Volume and value for the first nine months of 2022 were down respectively 48.2 percent and 9.1 percent. During September Mexico was second-ranked among importers with 404 metric tons valued at $2.1 million. Imports by Mexico in September increased by 33.8 percent in volume and 163 percent in value compared to September 2021.

 

For the first nine months of 2022 South Korea ranked fourth among importers by volume with 2,079 metric tons of egg products down 52.5 percent from January-September 2021 due to high domestic demand despite replacement of flocks after HPAI depletion. During September, South Korea resumed imports of egg products from the U.S. with 310 metric tons. Most flocks have been restored to production after HPAI although along with Japan seasonal cases of HPAI have been recently diagnosed. In 2021 South Korea imported 5,140 metric tons valued at $513.3 million up 133.3 percent from 2020.

 

The EU-27 imported 621 metric tons of U.S. egg products during the first nine months of 2022. valued at $17.9 million with a unit price of $2,883. Volume and value of egg products exported to the EU were respectively 120 and 361 percent higher than for the first nine months of 2021. During September exports to the EU-27 fell to 24 metric tons valued at $1.5 million.

 

COMMENTS

Exports of shell eggs and egg products to our USMCA neighbors were valued at $80.8 million in 2019 and $76.9 million in 2020. During 2021 the value of shell eggs and egg products attained $101.8 million or 32.7 percent of combined export value. January-September 2022 exports have reached $70.9 million in value.

 

In addition to landed cost, logistics and availability, prospects for long-term exports of shell eggs will be limited by disease considerations. Exports will be dependent on the willingness of importers to accept the World Organization for Animal Health (WOAH=OIE) principle of regionalization in the event of outbreaks of exotic Newcastle disease or isolation of either H5 or H7 avian influenza (AI), irrespective of pathogenicity in commercial flocks. Most importing nations are now applying regionalization and permitting imports on a zonal, county or state-exclusion basis following H5 or H7 AI infection. Canada and the U.S. operate according to a 2018 bilateral agreement to maintain trade in the event of outbreaks of catastrophic exotic diseases including HPAI and END.

 

With the ongoing and intensifying conflict in Ukraine, egg liquid exports from that Nation will decline sharply in the intermediate term creating World demand but availability in the U.S. will constrain exports.

 

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