Exports of shell eggs since March 2022 have been constrained by availability due to progressive and cumulative depletion of 44 million hens over 12 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 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. During February 2023 shell and product exports combined represented 1.1 percent of total production. The export situation may now improve as domestic prices have fallen sharply to pre-HPAI levels. Restoration of volume presumes that lost markets can be reclaimed.

  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-March 2022 with the corresponding months in 2023:-

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

                JANUARY-FEBRUARY 2022 COMPARED WITH JANUARY-MARCH 2023

SHELL EGGS

Shell egg exports from the U.S. during the 1^st quarter of 2023 decreased by 15.4 percent in volume but gained 87.6 percent in total value compared to January-March 2022. Unit value was $1.63 per dozen higher to $2.98 per dozen compared to the corresponding months 2022.  For March 2023 volume was down 24.6 percent to 9.1 million dozen and value up by 79.2 percent to $30.1 million compared to March 2022.

Canada was the leading importer of shell eggs in January-March 2023, with 14.3 million dozen representing 70.4 percent of volume and 76.7 percent of the $60.6 million total value of U.S. shipments of shell eggs. Unit price in January-March 2023 was $2.98 per dozen compared to $1.35 per dozen for 24 million dozen in January-March 2022. During March 2023 Canada represented 79.1 percent of U.S. shell egg exports of 9.1 million dozen and 84.4 percent of the value amounting to $30.1 million. These figures were respectively 24.1 percent and 195.3 percent above corresponding volume and value for March 2022. The 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.

During January-March 2023 the 2^nd through 6^th ranked nations with individual volumes of 0.4 (E.U.) to 1.6 million dozen (Bahamas) contributed to a collective 4.0 million dozen representing 19.7 percent of U.S. exports. This compares with 13.3 million dozen in January-March 2022. Value of exports for the five nations amounted to $8.4 million in January-March 2023 compared to $6.2 million for the first three months of 2022. Unit price for these importers averaged $2.16 per dozen, $0.64 below the March nest-run benchmark price of $2.74 per dozen excluding processing, inland transport and packaging. The trailing 12-month USDA benchmark price for nest-run large shell eggs was $2.70 per dozen

Hong Kong a traditional large-scale importer responsible for 21 percent of  shell egg imports in 2022 was not an importer in March and a distant 6^th-ranked importer of U.S. shell eggs during January-February 2023.

* USDA 12-month trailing Benchmark nest-run unit prices per dozen: April 2022, $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; January 2023, $3.26; February, $2.13 and March, $2.74.

EGG PRODUCTS

The total volume of exported egg products during January-March 2023 decreased 6.6 percent to 7,523 metric tons compared to January-March 2022. Total value of $35.5 million was lower by 6.0 percent compared to January-March 2022. Unit value increased by 13.4 percent to $4,719 per ton, up from the $4,158 received in January-March 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. During March 2023 exports of egg products increased 35.8 percent to 3,807 metric tons and value by 33.4 percent to $14.2 million compared to the corresponding months in 2022.

Japan was the leading importer from the U.S. in January-March 2023 based on a value, with a volume of 2,297 metric tons valued at $12.0 million that represented 30.5 percent of volume and 33.8 percent of the total value of U.S. exports of egg products. This was an increase of 13.1 percent in volume and 41.2 percent value compared to January-March 2022. The unit value of $5,224 per metric ton compares with the average unit value for U.S. exports of all egg products at $4,719 per metric ton or $4,492 per metric ton without Japan. 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 the leading importer by volume and fourth in value among importers during January-March 2023, purchasing 2,787 metric tons comprising 37.1 percent of volume but 10.7 percent of value with a unit price of $1,363 per metric ton. Volumes shipped reflect restoration of the institutional and food service sectors and relative availability of domestic product in Canada.

Mexico was the 3^rd ranked importer of egg products in January-March 2023 receiving 1,221 metric tons from the U.S. representing 16.2 percent of volume and 18.8 percent of value with a unit price of $5,487 per metric ton. Volume for January-March 2023 was up by 24.5 percent and value was higher by 81.1 percent compared to January-March 2022. Mexico imported 285 metric tons in March 2023 up 4.0 percent from March 2022.

During January-March 2023 South Korea imported 331 metric tons of egg products valued at $1.9 million down 76.0 percent in volume and 57.8 percent in value from January-March 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. Over the 1^st quarter of 2023 exports valued at $57 represented 59.3 percent of shell eggs and products shipped. Canada was 52.3 percent of the $96.1 value of exported shell eggs and products combined and 76.7 percent of the value of shell eggs during the first quarter of 2023 emphasizing our dependence on our USMCA partner.

Based on considerations including landed cost, logistics, USAPEEC promotional programs and availability, prospects for long-term exports of shell eggs will be limited by price  with disease considerations as a secondary factor. 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.