Export of Shell Eggs and Products January-July 2020.

09/05/2020

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 seven months of 2020 with the corresponding period in 2019:-

 

PRODUCT

Jan.-July 2019

Jan.-July 2020

Difference

Shell Eggs

     

Volume (m. dozen)

75.6

78.3

+2.7

(+3.6%)

Value ($ million)

59.7

68.0

+8.3

(+13.9%)

Unit Value ($/dozen)

0.78

0.87

+0.09

(+11.5%)

Egg Products

     

Volume (metric tons)

17,577

23,594

+6,017

(+34.2%)

Value ($ million)

56.2

62.1

+5.9

(+10.5%)

Unit Value ($/metric ton)

3,197

2,632

-565

(-17.7%)

 

U.S. SHELL EGG AND EGG PRODUCT EXPORTS DURING

JANUARY-JULY 2019 COMPARED WITH JANUARY-JULY 2020

 

Source USDA-FAS/USAPEEC

SHELL EGGS

Shell egg exports from the U.S. during the first seven months of 2020 increased by 3.6 percent in volume and 13.9 percent in total value compared to January-July 2019. Unit value was 11.5 percent higher or 9 cents per dozen for the comparison between 2020 and 2019. The top two importers, Hong Kong and Mexico combined, represented 73.4 percent of volume and 61.9 percent of total value.

 

Mexico was the leading importer of shell eggs in January-July 2020 with 29.2 million dozen representing 37.2 percent of volume and 30.0 percent of total value corresponding to a unit value of $0.69 per dozen. Prospects for additional sales will depend on continued acceptance of washed eggs held under refrigeration for retail sale, first announced in September 2018 but implemented in late 2019. For January-July 2020 imports of shell eggs by Mexico increased by 152 percent in volume and 168 percent in value compared to January-July 2019.

 

Hong Kong was the second-ranked importer of shell eggs in January-July 2020, with 28.3 million dozen representing 36.1 percent of volume and 31.9 percent of the $68.0 million total value of U.S. shipments of shell eggs. Average unit value was $0.87 cents per dozen, corresponding to the average prevailing nest-run USDA benchmark price during the seven months of 2020.

 

Canada was a distant third in rank as an importer during January-July 2020 with 6.3 million dozen representing 8.0 percent of volume and 14.5 percent of total value at $9.9 million with a unit value of $1.57 per dozen. Canada reduced volume by 73.8 percent during January-July 2020 compared to 2019. April consignments of shell eggs were down 80.6 percent and in May, June and July exports were negligible. This reflected decreased demand from the food service sector paralleling the situation in the U.S. Shell eggs shipped to Canada represent the difference between domestic demand and production, limited by their national controlled marketing system that has reduced farmers’ quotas.

 

The Caribbean Region represented 6.3 percent of export volume for January-July 2020. This region was up 22.0 percent in volume and 24.1 percent in total value, an obvious improvement compared with January-July 2019. The unit value of shell eggs exports to the Caribbean apparently averaged $1.34 per dozen, ($1.39 during 2019). This is disproportionately high compared with the average export realization, most probably because a proportion of shell eggs enumerated may have been either fertile hatching eggs or enriched specialty eggs.

 

The Middle East Region imported 6.1 million dozen during January-July 2020 valued at $4.9 million with a unit price of $0.80 per dozen. Volume and value in January-July 2020 were respectively higher by 118 percent and 81.5 percent compared to January-July 2019. Southern E.U. nations in addition to India and Ukraine have a competitive transport advantage over the U.S in this market. Within the Middle East region the UAE ranked as the 4th largest importer from the U.S. with a volume of 3.8 million dozen. Israel ranked 6th with 1.4 million dozen, possibly based on depletion of flocks infected with SE and depletion of obsolete facilities. Collectively these nations imported shell eggs to the value of $4.3 million during January-July of 2020.

 

EGG PRODUCTS

The total volume of exported egg products during January-July 2020 increased by 34.2 percent and total value was higher by 10.5 percent compared to January-July 2019. Unit value decreased by 17.7 percent to $2,632 per ton from $3,197 recorded for January-July 2019. This decline reflects the relationship between World supply and demand with Ukraine and India as significant exporters.

 

Japan was the leading importer based on a value of $20.2 million with a volume of 5,557 metric tons that represented 23.6 percent of the total U.S. exports of egg products, an increase of 17.6 percent compared with January-July 2019. The high unit value of $3,635 per metric ton compares with the average value for all exports of $2,632 or $2,323 excluding Japan. The discrepancy in unit price reflects the product mix including yolks. With conclusion of a bilateral trade agreement the U.S. will no longer be at a competitive disadvantage with respect to the E.U.

 

Mexico continued as the second-ranked importer based on volume in January-July 2020 receiving 7,537 metric tons comprising 31.9 percent of export volume and 21.5 percent of value with a unit price of $1,778 per metric ton.

 

Canada represented a distant third in rank among importers purchasing 3,903 metric tons comprising 16.5 percent of volume and 12.5 percent of value with a low unit price of $1,998 per metric ton. During January-July 2020 Canada increased volume by 16.9 percent but value increased 8.3 percent compared to the first seven months of 2019.

 

Notable changes over the first seven months of 2020 included a 127 percent increase in exports to the UK+EU of 1,412 metric tons representing 6.0 percent of monthly volume valued at $5.2 million and at a unit price of $3,682 per metric ton.

 

South Korea increased imports 66.8 percent and value by 62.5 percent to $3.9 million. In July this nation imported 179 metric tons valued at $0.7 million with a unit price of $3,911per metric ton.

 

COMMENTS

Successful conclusion of negotiations to replace NAFTA led to the trilateral USMCA, announced on September 30th 2018. The subsequently-modified agreement was ratified by the Parliament of Canada, 17 months after signing the basic trade pact and only after adoption by the U.S. Congress and the Senate of Mexico in 2019. Exports of shell eggs and egg products to our neighbors were valued at $74.7 million in 2017, $89.7 million in 2018 and $80.8 million in 2019.

 

Prospects for long-term exports of shell eggs will be limited by the willingness of importers to accept the World Organization for Animal Health (OIE) principle of regionalization in the event of exotic Newcastle disease or isolation of either H5 or H7 avian influenza, irrespective of pathogenicity. Most importing nations are now applying regionalization and permitting imports on a county or state-exclusion basis following H5 or H7 AI infection.

 

Both the END outbreak in backyard flocks in southern California and the localized and limited LPAI outbreaks in turkey flocks in the Carolinas are now officially over. In accordance with OIE principles no embargos should be imposed on either the states or counties affected.

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






























































































































































































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