Export of Shell Eggs and Products, January 2023.

Exports of shell eggs since March 2022 have been constrained by availability due to progressive and cumulative depletion of 44 million hens over 11 months as a result of HPAI with the national flock about 20 million hens constantly lower than the pre-HPAI complement. Sharp rises in price as a result of supply-demand disequilibrium have made U.S. export prices uncompetitive as denoted by lower volumes 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 January 2022 with January 2023:-

U.S. EXPORTS OF SHELL EGG AND EGG PRODUCTS DURING JANUARY 2022 COMPARED WITH JANUARY 2023

SHELL EGGS

Shell egg exports from the U.S. during January 2023 decreased by 18.6 percent in volume but gained 107 percent in total value compared to pre-HPAI January 2022. Unit value was $1.54 per dozen higher to $2.98 per dozen compared to January 2022.

Canada was the leading importer of shell eggs in January 2023, with 3.5 million dozen representing 66.7 percent of volume and 82.6 percent of the $17 million total value of U.S. shipments of shell eggs. Unit price in January 2023 was $3.23 per dozen compared to $1.00 per dozen for 0.1 million dozen in January 2022. The sharp increase in imports by Canada is attributed to higher consumer demand and depletion of some domestic flocks due to HPAI. The controlled supply situation in Canada inhibits flexibility necessitating imports from the U.S.

Hong Kong a traditional large-scale importer responsible for 21 percent of imports in 2022 was a distant 5^th-ranked importer of U.S. shell eggs during January 2023. Only 0.1 million dozen were shipped represented 1.8 percent of volume and 1.2 percent of value. Unit price at $2.00 per dozen was $0.54 per dozen below the average prevailing 12-month trailing average nest-run USDA benchmark price of $2.54*. This indicates a loss in revenue experienced by shippers presumably operating under contract. During 2022 Hong Kong imported 14.8 million dozen from the U.S. valued at $18.3 million compared to 2021 with a volume of 53.8 million dozen valued at $48.1 million

During January 2023 five nations with individual volumes of 0.1 to 0.6 million dozen contributed to a collective 2.1 million dozen representing 36.8 percent of U.S. exports. This compares with 4.4 million dozen in January 2022. Value of exports for the five nations amounted to $2.8 million in January 2023 compared to $5.1 million for the first month of 2022. Unit price was $1.33 per dozen, $1.93 below the January nest-run benchmark price of $3.26* per dozen and did not take into account processing, inland transport and packaging

* 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; September $2.70; October $2.84; November, $3.40; December $4.39 and January 2023, $3.26.

EGG PRODUCTS

The total volume of exported egg products during January 2023 decreased by 31.2 percent to 1,652 metric tons compared to January 2022. Total value of $10.7 million was higher by 8.0 percent compared to January 2022. Unit value increased by 57.0 percent to $6,476 per ton, up from the $4,125 received in January 2022. During 2022 the U.S. exported 25,306 metric tons of egg products valued at $115 million with a unit price of $4,572 per metric ton. Escalation 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.

Mexico was the leading importer of egg products in January 2023 based on value receiving 457 metric tons from the U.S. representing 27.7 percent of volume and 27.0 percent of value with a unit price of $6,345 per metric ton. Volume for January 2023 was up by 25.8 percent and value was higher by 123 percent compared to January 2022.

Japan was the leading importer from the U.S. in January 2023 based on a volume of 600 metric tons valued at $2.6 million that represented 36.3 percent of volume and 24.3 percent of the total value of U.S. exports of egg products. This was an increase of 13.0 percent in value compared to January 2022. The unit value of $4,333 per metric ton compares with the average unit value for U.S. exports of all egg products at $2,450 per metric ton. With the conclusion of a bilateral trade agreement the U.S. is no longer at a competitive disadvantage with respect to the E.U. In 2022 Japan imported 8,596 metric tons of egg products from the U.S., 27.2 percent less than in 2021.

Canada was third in rank by volume and third in value among importers during January 2023, purchasing 201 metric tons comprising 12.1 percent of volume and 6.5 percent of value with a unit price of $3,483 per metric ton. 2021. Volumes shipped reflect restoration of the institutional and food service sectors and availability of domestic product in Canada.

In January 2023 South Korea imported 105 metric tons of egg products valued at $0.5 million down 76.5 percent in volume and 64.2 percent in value from January 2022. Most flocks in South Korea have been restored to production after depopulation following outbreaks of HPAI although along with Japan, seasonal cases of HPAI have been recently diagnosed. In 2022 South Korea imported 2,171 metric tons valued at $7.4 million and in 2021 5,113 metric tons valued at $13.2 million.

COMMENTS

Exports of shell eggs and egg products to our USMCA neighbors were valued at $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. Exports in 2022 amounted to $126.5 million in value equivalent to 47.5 percent of combined 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), in commercial flocks, irrespective of pathogenicity. 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 have declined sharply in the intermediate term but availability from 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.