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Export of Shell Eggs and Products, January-July 2023.

Exports of shell eggs during the 12-month period commencing March 2022 were constrained by availability due to progressive and cumulative depletion of 44 million hens divided among spring and fall waves as a result of HPAI. The national flock was about 20 million hens lower than the pre-HPAI complement on an average weekly basis during 2022. Sharp rises in price as a result of supply-demand disequilibrium made U.S. export prices non-competitive as denoted by lower volumes over successive months from March 2022. Egg products were also impacted but to a lesser extent than shell eggs. During June 2023 shell and product exports combined represented 2.5 percent of total production, more than double the volume recorded in January 2023 but exports declined in July to 1.9 percent of similar production by U.S. flocks. At the present time the national flock is 4 to 5 million hens lower than pre-HPAI levels. Export volume that improved in May should continue as domestic prices have fallen sharply. It is questioned whether lost markets other than the USMCA and Caribbean nations will be reclaimed over the intermediate term.

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-July 2022 with the corresponding months in 2023:-

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

JANUARY-JULY 2022 COMPARED WITH JANUARY-JULY 2023

SHELL EGGS

Shell egg exports from the U.S. during the first half of 2023 increased by 10.7 percent in volume and gained 63.4 percent in total value compared to January-July 2022. Unit value was $0.46 per dozen higher to $2.06 per dozen compared to the corresponding month in 2022. For July 2023 volume was up 170 percent to 6.2 million dozen and value up by 64.4 percent to $7.4 million compared to July 2022.

Canada was the leading importer of shell eggs during January-July 2023, with 26.3 million dozen representing 51.3 percent of volume and 62.0 percent of the $105.9 million total value of U.S. shipments of shell eggs. Unit price for January-July 2023 was $2.06 per dozen compared to $1.60 per dozen for 51.3 million dozen exported during January-July 2022. During July 2023 first-ranked Canada with 2.3 million dozen represented 35.5 percent of U.S. shell egg exports of 6.2 million dozen and 36.4 percent of the total value amounting to $7.4 million. These figures were respectively infinitely higher and 800 percent above corresponding volume and value for July 2022. Imports by Canada were driven by consumer demand following depletion of some domestic flocks due to HPAI. The controlled supply situation in Canada inhibits flexibility necessitating imports from the U.S. to balance availability with demand.

Mexico was the second-ranked importer of shell eggs over the first seven months of 2023 with 8.3 million dozen representing 16.2 percent of export volume and 8.6 percent of value. This discrepancy was due to a low unit value of $1.09 per dozen compared to an average value of $2.06 per dozen for all exports. During July Mexico imported 1.4 million dozen with a value of $1.6 million at a unit price of $1.14 per dozen.

Hong Kong, traditionally a large-scale importer, responsible for 21 percent of imports in 2022 was ranked third among importers of U.S. shell eggs during January-July 2023 with 3.9 million dozen valued at $4.7 million at a unit value of $1.21 per dozen. July imports attained 0.9 million dozen valued at $0.8 million.

During January-July 2023 the remaining importing nations and regions with a collective volume of 12.8 million dozen represented 24.9 percent of U.S. exports. Value of exports to these importing nations amounted to $26.4 million in January-July 2023 compared to $22.8 million million for the first seven months of 2022. Unit price for these importers averaged $2.06 per dozen, equivalent to the seven-month average USDA export price of $2.06, per dozen, tray packed, excluding processing, inland transport and cartons. The average 12-month trailing USDA benchmark price for nest-run large shell eggs was $2.26* per dozen weighted by high prices during shortages during the second half of 2022 and the first quarter of 2023 resulting from depletion of flocks infected with HPAI.

*USDA 12-month USDA benchmark nest-run unit prices per dozen: 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; March, $2.74; April, $1.38; May, $0.63 and June, $0.82.

EGG PRODUCTS

The total volume of exported egg products during January-July 2023 increased 31.7 percent to 19,220 metric tons compared to January-July 2022. Total value of $81.6 million was higher by 13.8 percent compared to January-July 2022. Unit value decreased by 12.6 percent to $4,246 per ton, down from the $4,914 received in January-July 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. 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. During July 2023 exports of egg products increased 63.1 percent to 2,192 metric tons and value was higher by 22.1 percent to $10.5 million compared to the corresponding month in 2022.

Japan was the leading importer from the U.S. during January-July 2023 based on value of $33.7 million, with a volume of 6,977 metric tons that represented 36.3 percent of volume and 62.0 percent of the total value of U.S. exports of egg products. Exports to Japan increased by 30.6 percent in volume and 34.8 percent value compared to January-July 2022. The unit value of $4,830 per metric ton compares with the average unit value for U.S. exports of all egg products at $4,246 per metric ton or $3,912 per metric ton without Japan. During July Japan imported 813 million metric tons valued at $4.6 million, up respectively 42.1 percent and 35.2 percent from July 2022.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 second-ranked importer based on a volume of 5,488 metric tons but fourth in value at $7.2 million among all importers during January-July 2023. Canada represented 28.6 percent of volume but 8.8 percent of value with a unit price of $1,311 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 third-ranked importer by volume of egg products during the January-July 2023 period receiving 3,108 metric tons from the U.S. representing 16.2 percent of volume and 19.0 percent of value with a unit price of 4,987 per metric ton. Volume for January-July 2023 was up by 162 percent and value was higher by 210 percent compared to January-July 2022. Mexico imported 497 metric tons in July 2023 compared with 186 metric tons during July 2022.

South Korea was ranked fourth among importers of egg products during the January-July 2023 period with a volume of 618 metric tons valued at $3.1 million. Most flocks in South Korea have been restored to production after depopulation following outbreaks of HPAI. In 2022 South Korea imported 2,171 metric tons valued at $7.4 million compared to 2021 imports from the U.S. that attained 5,113 metric tons valued at $13.2 million. In July Mexico was not among the top six importers of egg products.

The E.U. was ranked sixth among importers over the first seven months of 2023. Imports from the U.S. attained 604 metric tons valued at $11.6 million with a unit price of $1,921 per metric ton.

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 the combined value of shell eggs and products. Over the first seven months of 2023 exports valued at $97.5 million represented 52.0 percent of shell egg and egg products combined. Canada represented 67.0 percent of the $105.9 million value shell eggs and 8.8 percent of egg products valued at $87.6 million shipped during the first seven months of 2023 emphasizing dependence on this 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 and disease considerations. 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.

With the ongoing and intensifying conflict in Ukraine, egg liquid exports from that Nation have declined sharply for the intermediate term but now availability from the U.S. will contribute to world demand.

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