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Egg Exports

05/05/2024

Export of Shell Eggs and Products, January-March 2024.

 

The volume of exports of shell eggs are conditioned by the domestic needs of importers, price against competitors and disease and logistic restraints. This is demonstrated by the 182 percent drop in volume of shell egg exports from 2012 (198 million dozen) to 2022 (70 million dozen). Due to depletion of flocks in 2023, export prices increased 113 percent from $1.02 per dozen to $2.16 per dozen reflecting domestic prices. Depressed exports persisted in 2023 with 90 million dozen shell eggs exported at an average price of $1.80 per dozen as losses from HPAI rose in the last quarter with a consequential rise in domestic price.

 

It is questioned whether lost markets other than the USMCA and Caribbean nations will be reclaimed over the intermediate term. Sporadic and short-term exports may be made to various nations based on supply disruption caused by HPAI or other factors.

 

USDA-FAS data collated by USAPEEC, reflecting export volume and values for shell eggs and egg products are shown in the table below comparing 2024 with 2023:-

 

PRODUCT

Jan.-March 2023

Jan.-March 2024

Difference

Shell Eggs

     

Volume (m. dozen)

20.3

21.8

+1.6 (+7.8%)

Value ($ million)

60.6

43.4

 -17.2 (-28.3%)

Unit Value ($/dozen)

2.89

1.99

 -0.90 (-31.1%)

Egg Products

     

Volume (metric tons)

7,523

7,369

 -154 (-2.0%)

Value ($ million)

35.5

35.1

-0.4 (-1.1%)

Unit Value ($/metric ton)

4,719

4,763

-44 (-0.9%)

 

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

JANUARY-MARCH 2024 COMPARED WITH 2023

 

SHELL EGGS

Shell egg exports from the U.S. during the fist quarter of 2024 increased by 7.8 percent in volume but declined 28.3 percent in total value compared to the corresponding months in 2023. Unit value declined 31.1 percent to $1.99 per dozen compared to the corresponding quarter in 2023.

 

Canada was the leading importer of shell eggs during January-March 2024, with 16.0 million dozen representing 73.4 percent of volume and 71.0 percent of the $43.4 million total value of U.S. shipments of shell eggs. Unit price over January-March 2024 was $1.93 per dozen compared to $3.25 per dozen for consignments in January-March 2023. Imports by Canada are driven by consumer demand balanced against availability through the controlled supply situation. This inhibits flexibility, necessitating imports from the U.S. to cater for demand especially when additional losses occur due to HPAI. During March 2024 Canada imported 7.9 million dozen up 9.7 percent over the corresponding month in 2023. Value was down 40.2 percent to $15.2 million but unit value was 45.2 percent lower to $1.92 per dozen.

 

The Caribbean Region (Bahamas, Netherlands Antilles, Cayman Islands) was a distant second in shell egg imports from the U.S. during January-March 2024, with 2.5 million dozen representing 11.5 percent of volume and 11.5 percent of the total value of U.S. shipments of shell eggs. Unit price in January-March 2024 was $2.00 per dozen

 

Mexico was the third-ranked importer of shell eggs in January-March 2024 with a volume of 0.6 million dozen representing 2.8 percent of export volume and 2.3 percent of value. Unit value of $1.67 per dozen compared to an average value of $1.99 per dozen for all exports. During March Mexico imported 0.1 million dozen valued at $0.2 million.

The average 12-month trailing USDA benchmark price for nest-run large shell eggs was $1.56* per dozen weighted by high prices caused by shortages during the first quarter of 2023 resulting from depletion of flocks infected with HPAI.

 

*USDA 12-month USDA benchmark nest-run unit prices per dozen: $2.74; April, $1.38; May, $0.60; June, $0.82; July, $0.83 and August, $0.90; September, $1.00; October, $0.89; November, $1.65; December, $1.81; January 2024, $1.72; February, $2.51 and March, $1.87.

 

EGG PRODUCTS

The total volume of exported egg products during January-March 2024 decreased 2.0 percent to 7,369 metric tons compared to January-March 2023. Total value of $35.1 million was lower by 1.1 percent compared to January-March 2023. Unit value decreased by 0.9 percent to $4,763 per ton compared to January-March 2023. During 2023 the U.S. exported 29,814 metric tons of egg products valued at $134.3 million with a unit price of $4,505 per metric ton. Fluctuation in unit price reflects the composition of exports and the relationship between World supply and demand. Ukraine is now restrained in production but India continues as a significant exporter.

 

Japan was the 1st-ranked importer by volume of egg products during January-March 2024 receiving 1,788 metric tons from the U.S. valued at $8.7 million representing 24.3 percent of volume and 24.8 percent of value with a unit price of $4,865 per metric ton. Volume for January-March 2024 was down by 22.2 percent and value was lower by 27.5 percent compared to January-March 2023. During March 2024 Japan imported 651 metric tons down 29.5 percent over the corresponding month in 2023. Value was down 42.0 percent to $2.9 million and unit value was 17.8 percent lower to $4,455 per metric ton. During 2023 Japan imported 10,352 metric tons of egg products from the U.S., valued at $49.9 million. With the conclusion of a bilateral trade agreement, the U.S. is no longer at a competitive disadvantage with respect to the E.U.

 

Mexico was the 2nd ranked importer from the U.S. during January-March 2024 based on a volume of 1,538 metric tons with a value of $5.5 million, representing 20.9 percent of volume and 15.7 percent of the total value of U.S. exports of egg products. Exports to Mexico were up by 25.0 percent in volume but 17.9 percent lower in value compared to January-March 2023. The unit value of $3,576 per metric ton can be compared with the average unit value for U.S. exports of all egg products at $4,763 per metric ton. During March, Mexico imported 506 metric tons valued at $1.5 million. Volume was 77.5 percent higher and value was 28.5 percent lower than in March 2023.

 

Canada was the 3rd-ranked importer in January-March 2024 based on a volume of 1,185 metric tons with a value of $4.3 million. Canada represented 16.1 percent of volume and 12.3 percent of value with a unit price of $3,628 per metric ton. During March Canada was 3rd- ranked with 442 metric tons representing 17.7 percent of exports of egg products but down 79.1 percent from March 2023. Value was $1.6 million or 14.9 percent of the monthly total, down 33.3 percent from March 2023 due to a 218 percent increase in unit revenue to $3,619 per metric ton, reflecting a change in proportions of egg products consigned. Volumes shipped reflect restoration of the institutional and food service sectors and the relative availability of domestic product in Canada.

 

South Korea was ranked fourth among importers of egg products during January-March 2024 with a volume of 759 metric tons valued at $3.0 million with a unit value of $3,952 per metric ton. Comparing these values with January-March 2023, volume was 129 percent higher and value was up by 57.9 percent. Most flocks in South Korea have been restored to production after depopulation following 2022 outbreaks of HPAI. Import volume may have been influenced by recent limited but rising flock depletion or alternatively the need to replenish stocks after the Lunar New Year. In 2023 South Korea imported 1,141 metric tons valued at $5.3 million. Depending on severity, the return of HPAI may result in a disparity between local availability and demand requiring imports in 2024 as in 2022.

 

The E.U.-27 continues as an importer of egg products with 698 metric tons valued at $7.4 million with a unit price of $1,060 per metric ton.

 

Australia has emerged as an importer of egg products with 349 metric tons shipped during the first quarter of 2024 valued at 1.2 million with a unit price of $3,077 per metric ton.

 

COMMENTS

Exports to Canada and Mexico combined in 2022 amounted to $126.5 million in value equivalent to 47.5 percent of the total value of shell eggs and products shipped. During 2023 exports valued at $150.7 million represented 50.8 percent of shell egg and egg products amounting to $296.5 million. Canada represented 59.0 percent of the $162.2 million for shell eggs and 10.3 percent of egg products valued at $121.2 million, consigned during 2023, emphasizing dependence on this USMCA partner. During January-March 2024 the USMCA represented 52.9 percent of combined shell egg and product sales valued at $78.5 million.

 

Aspirational volumes of exports in excess of five percent of domestic production are unrealistic. The E.U., Japan, South Korea and Taiwan will buy according to their needs for undifferentiated shell eggs and products based on landed price in a competitive World market. Purchase decisions for commodities are determined by FOB price, freight, duty and broker margins. Shell eggs and the various categories of egg products are essentially commodities and generally do not respond to promotion.

 

Exports will be dependent on the willingness of importers to accept the World Organization for Animal Health (WOAH) principle of regionalization (zoning) 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.

 

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