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

09/10/2022

Exports of shell eggs since May have been constrained by availability due to successive depletion of 31 million hens through July as a result of HPAI. Sharp rises in price as a result of supply-demand disequilibrium have made U.S. export prices non-competitive as denoted by lower volumes and values for 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 seven months of 2021 with 2022:-

 

PRODUCT

Jan.-July 2021

Jan.-July 2022

Difference

Shell Eggs

Volume (m. dozen)

116.2

40.5

-75.7 (-65.2%)

Value ($ million)

116.8

64.8

-52.0 (-44.5%)

Unit Value ($/dozen)

1.01

1.60

+0.59 (+58.4%)

Egg Products

Volume (metric tons)

21,262

14,666

 -6,596 (-31.0%)

Value ($ million)

63.1

72.0

+8.9 (+16.2%)

Unit Value ($/metric ton)

2,968

4,909

+1,941 (+65.4%)

 

 

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

JANUARY-JULY 2022 COMPARED WITH 2021

SHELL EGGS

Shell egg exports from the U.S. during the first seven months of 2022 decreased by 75.7 percent in volume and 52.0 percent in total value compared to 2021. Unit value was 59.0 cents higher to $1.60 per dozen for the seven-month period in 2022 compared to January-July 2021. The top two importers were Canada (31.1 percent of volume) and Hong Kong (30.1 percent), collectively representing 61.2 percent of volume and 57.9 percent of total value.

During July the volume of shell egg exports declined 86.9 percent from July 2021 to 2.3 million dozen. Value declined 73.1 percent to $4.6 million attributed to high domestic price and reduced availability as a result of depopulation of 31.1 million hens due to HPAI from Late February through early June.

 

Hong Kong was the leading importer of shell eggs in January-July 2022, with 12.6 million dozen representing 31.1 percent of volume and 22.8 percent of the $64.8 million total value of U.S. shipments of shell eggs. Unit price was $1.18 per dozen.

 

Average unit value over the seven-month period was $1.17 per dozen, below the average prevailing nest-run USDA benchmark price of $1.86* over the first seven months of 2022. During July, Hong Kong imported 0.6 million dozen shell eggs valued at $0.8 million down 87.8 percent in volume and down 79.5 percent in value from July 2021 at a unit price of $1.33 per dozen. During 2021 Hong Kong imported 53.8 million dozen valued at $48.2 million.

 

Canada was the second-ranked importer of U.S. shell eggs during the first seven months of 2022. The 12.2 million dozen shipped represented 30.1 percent of volume and 35.0 percent of value with a unit price of $1.86 per dozen. During July 2022 imports of shell eggs from the U.S. were negligible indicating a balance between domestic supply and demand in Canada that operates a controlled supply program.

 

Mexico was the third-ranked importer of shell eggs during January-July 2022 with 3.8 million dozen representing 9.4 percent of volume and 6.8 percent of total value corresponding to a unit value of $1.16 per dozen, 37.6 percent below the U.S. benchmark average of $1.86 per dozen for the seven months. During July exports to Mexico were negligible. Over 2021 Mexico was second-ranked in shell egg exports receiving 52.2 million dozen valued at $41.9 million.

 

For January-July 2022 the remaining nations or regions of importance were the Caribbean (3.8 million dozen) and the Middle East (1.6 million dozen with Israel comprising 71 percent). Other importing nations collectively received 6.0 million dozen representing 14.9 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 and July $2.71.

 

EGG PRODUCTS

The total volume of exported egg products during January-July 2022 decreased by 31.0 percent to 14,666 metric tons compared to the corresponding months in 2021. Total value of $72.0 million was higher by 14.1 percent compared to the first seven months of 2021. Unit value increased by 65.4 percent to $4,909 per ton, up from the $2,968 received during January-July 2021.

 

During July 2022 the U.S. exported 1,344 metric tons, down 53.7 percent in volume but up 1.2 percent in value compared to July 2021. The difference in unit price reflects the composition of exports and the relationship between World supply and demand. Ukraine is now restrained in production and India was a significant exporter during the month. During 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.

 

 Japan was the leading importer for January-July 2022 based on a value of $25.0 million and a volume of 5,293 metric tons that represented 36.1 percent of the total U.S. exports of egg products, a decrease of 26.3 percent compared with January-July 2021. The unit value of $4,723 per metric ton compares with the average value for U.S. exports of all egg products with a unit value of $4,909. 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 value among importers, purchasing 3,827 metric tons in January-July 2022 comprising 26.1 percent of volume and 17.3 percent of value with a unit price of $3,266 per metric ton. During July 2022 Canada was the fourth-ranked importer by volume receiving 218 metric tons representing 16.2 percent of volume and 10.5 percent of value. Volume was 53.4 percent lower and value was 18.2 percent lower compared to July 2021. Volumes reflect restoration of the institutional and food service sectors and availability of domestic product in Canada.

 

For the first seven months of 2022 South Korea ranked third among importers by volume with 1,769 metric tons of egg products down 47.5 percent from January-July 2021 due to domestic demand despite production by replacement flocks after HPAI depletion. During July South Korea was third-ranked as an importer with 166 metric tons, down 74.5 percent from July 2021 as most flocks have been restored to production after HPAI. In 2021 South Korea imported 5,140 metric tons valued at $513.3 million up 133.3 percent from 2020.

 

Mexico was fourth-ranked as an importer of egg products over Jan.-July 2022 receiving 1,185 metric tons from the U.S. representing 8.1 percent of volume and 6.9 percent of value with a unit price of $4,219 per metric ton. Volume and value for the first seven months of 2022 were down respectively 68.6 percent and 37.5 percent. During July Mexico was third-ranked among importers with186 metric tons valued at $1.2 million.

 

The EU-27 imported 572 metric tons of U.S. egg products during the first seven months of 2022. valued at $14.7 million with a unit price of $2,570. Volume and value of egg products exported to the EU were respectively 131.6 and 267.5 percent higher than for the seven months of 2021. During July exports to the EU-27 fell to 18 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-July 2022 exports have reached $44.6 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 from 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 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.






































































































































































































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