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Export of Shell Eggs and Products, January-September 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 production by U.S. flocks. At the present time the national flock is 4 million hens lower than pre-HPAI levels. Export volume that improved from May onwards 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-September 2023 with the corresponding months in 2022:-

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

JANUARY-SEPTEMBER 2022 COMPARED WITH JANUARY-SEPTEMBER 2023

SHELL EGGS

Shell egg exports from the U.S. during the first nine months of 2023 increased by 14.5 percent in volume and gained 38.6 percent in total value compared to January-September 2022. Unit value was $0.16 per dozen higher to $1.89 per dozen compared to the corresponding month in 2022. For September 2023 volume was up 26.0 percent to 7.9 million dozen and value down by 6.3 percent to $10.8 million compared to September 2022.

Canada was the leading importer of shell eggs during January-September 2023, with 33.8 million dozen representing 80.3 percent of volume and 59.9 percent of the $126.8 million total value of U.S. shipments of shell eggs. Unit price for January-September 2023 was $ 1.89 per dozen compared to $2.08 per dozen for 20.3 million dozen exported during January-September 2022. During September 2023 first-ranked Canada with 3.5 million dozen represented 44.3 percent of U.S. shell egg exports of 7.9 million dozen and 45.0 percent of the total value amounting to $10.8 million. Volume was 21.5 percent higher but value was 64.7 percent lower than corresponding figures for September 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 nine months of 2023 with 12.2 million dozen representing 18.2 percent of export volume and 10.9 percent of value. This discrepancy was due to a low unit value of $1.14 per dozen compared to an average value of $1.89 per dozen for all exports. During September Mexico imported 2.0 million dozen with a value of $2.6 million at a unit price of $1.30 per dozen.

Hong Kong, traditionally a large-scale importer, responsible for 21 percent of imports in 2022 was ranked a distant third among importers of U.S. shell eggs during January-September 2023 with 5.5 million dozen valued at $6.3 million at a unit value of $1.15 per dozen. September imports attained 1.0 million dozen valued at $0.9 million with a unit value of $0.90 per dozen.

During January-September 2023 the remaining three major importing nations or regions with a collective volume of 7.4 million dozen represented 11.1 percent of U.S. exports. Value of exports to these importing nations amounted to $14.3 million in January-September 2023 compared to $13.1 million for the first nine months of 2022. Unit price for these importers averaged $1.93 per dozen, equivalent to the nine-month average USDA export price of $1.89, per dozen, tray packed, excluding processing, inland transport and outer cartons. The average 12-month trailing USDA benchmark price for nest-run large shell eggs was $2.11* 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: 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; June, $0.82; July, $0.99 and August, $1.89.

EGG PRODUCTS

The total volume of exported egg products during January- September 2023 increased 21.6 percent to 22,817 metric tons compared to January-September 2022. Total value of 98.3 million was higher by 7.8 percent compared to January-September 2022. Unit value decreased by 13.4 percent to $4,308 per ton, down from the $4,972 received in January-September 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 September 2023 exports of egg products fell 5.0 percent to 1,574 metric tons and value was lower by 7.1 percent to $7.8 million compared to the corresponding month in 2022.

Japan was the leading importer from the U.S. during January-September 2023 based on value of $40.3 million, with a volume of 8,354 metric tons that represented 36.6 percent of volume and 23.3 percent of the total value of U.S. exports of egg products. Exports to Japan increased by 22.8 percent in volume and 27.9 percent value compared to January-September 2022. The unit value of $4,824 per metric ton compares with the average unit value for U.S. exports of all egg products at $4,308 per metric ton or $4,010 per metric ton without Japan. During September Japan imported 467 million metric tons valued at $2.6 million, down 16.5 percent in volume and up 3.7 percent in value from September 2022. In 2022 Japan imported 8,596 metric tons of egg products from the U.S., 27.2 percent less than in 2021.With the conclusion of a bilateral trade agreement, the U.S. is no longer at a competitive disadvantage with respect to the E.U.

Canada was the second-ranked importer based on a volume of 6,293 metric tons but fourth in value at $9.4 million among all importers during January-September 2023. Canada represented 27.6 percent of volume but 9.6 percent of value with a unit price of $1,493 per metric ton. Volumes shipped reflect restoration of the institutional and food service sectors and relative availability of domestic product in Canada. In September Canada imported 475 tons of egg products valued at $1.4 million up 30.1 percent in volume and up 17.9 percent in value compared to September 2022 but with a low unit value of $2,947 per metric ton.

Mexico was the third-ranked importer by volume of egg products during the January-September 2023 period receiving 3,604 metric tons from the U.S. representing 15.8 percent of volume and 17.9 percent of value with a unit price of $4,883 per metric ton. Volume for January-September 2023 was up by 57.2 percent and value was higher by 64.5 percent compared to January-September 2022. Mexico imported 256 metric tons in September 2023 compared with 404 metric tons during September 2022.

The E.U. was ranked fourth among importers over the first nine months of 2023. Exports attained 807 metric tons valued at $14.2 million up 30.0 percent in volume but down 20.6 percent in value compared to January-September 2022 with a low unit value of $1,759 per metric ton. During September the E.U. imported 49 metric tons valued at $1.7 million reflecting an increased unit value of $3.469 per metric ton.

South Korea was ranked fifth among importers of egg products during the January-September 2023 period with a volume of 698 metric tons valued at $3.7 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 September South Korea did not import from the U.S.

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 nine months of 2023 exports valued at $116.9 million represented 56.4 percent of shell egg and egg products amounting to $225 million. Canada represented 59.9 percent of the $126.8 million for shell eggs and 4.6 percent of egg products valued at $98.3 million, shipped during the first nine 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.