Export of Shell Eggs and Products, January-November 2022.
Exports of shell eggs since March have been constrained by availability due to progressive and cumulative depletion of 44 million hens over 11 months as a result of HPAI with the national flock at about 20 million hens less than pre-HPAI. Sharp rises in price as a result of supply-demand disequilibrium have made U.S. export prices uncompetitive as denoted by lower volumes and values over 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 eleven months of 2021 with 2022:-
PRODUCT
|
Jan.-Nov. 2021
|
Jan.-Nov. 2022
|
Difference
|
Shell Eggs
|
|
|
|
Volume (m. dozen)
|
185.1
|
62.7
|
-122.4 (-66.1%)
|
Value ($ million)
|
185.8
|
121.5
|
-64.3 (-34.6%)
|
Unit Value ($/dozen)
|
1.00
|
1.94
|
+0.94 (+94.0%)
|
Egg Products
|
|
|
|
Volume (metric tons)
|
32,124
|
23,313
|
-8,811 (-27.4%)
|
Value ($ million)
|
97.2
|
107.5
|
+10.3 (+10.5%)
|
Unit Value ($/metric ton)
|
3,101
|
4,611
|
+1,601 (+53.2%)
|
U.S. EXPORTS OF SHELL EGG AND EGG PRODUCTS DURING
JANUARY-NOVEMBER 2022 COMPARED WITH 2021
SHELL EGGS
Shell egg exports from the U.S. during the first eleven months of 2022 decreased by 66.1 percent in volume and 34.6 percent in total value compared to 2021. Unit value was 94 cents per dozen higher to $1.94 per dozen for the eleven-month period in 2022 compared to January-November 2021. The top two importers were Canada (42.4 percent of volume) and Hong Kong (23.6 percent), collectively representing 66.0 percent of volume and 67.4 percent of total value.
During November the volume of shell egg exports declined 53.0 percent from November 2021 to 5.5 million dozen. Value increased 46.9 percent to $16.9 million attributed to high domestic price and reduced availability as a result of depopulation of 42 million hens through November, offset by transfer of maturing pullets placed as chicks five months previously.
Canada was the leading importer of shell eggs in January-November 2022, with 26.6 million dozen representing 42.4 percent of volume and 52.6 percent of the $121.5 million total value of U.S. shipments of shell eggs. Unit price over eleven months was $2.40 per dozen compared to $1.82 per dozen in October 2022.
During November Canada imported 3.3 million dozen up 50.0 percent from November 2021 but with a corresponding 476 percent increase in value to $12.1 million with a unit price of $3.67 per dozen. The sharp increase in imports by Canada is attributed to higher consumer demand and depletion of some flocks due to HPAI. The controlled supply situation in Canada inhibits flexibility necessitating imports from the U.S.
Hong Kong was the second-ranked importer of U.S. shell eggs during the first eleven months of 2022. The 14.8 million dozen shipped represented 23.6 percent of volume and 14.9 percent of value. Unit price at $1.22 per dozen was $0.95 per dozen below the average prevailing nest-run USDA benchmark price of $2.17* over the first eleven months of 2022. This indicates a loss in revenue experienced by shippers presumably operating under contract. During November, Hong Kong imported 0.4 million dozen shell eggs valued at $0.5 million down 91.1 percent in volume and down 88.4 percent in value from November 2021 at a unit price of $1.25 per dozen. During 2021 Hong Kong imported 53.8 million dozen valued at $48.2 million
Bahamas was third-ranked as a shell-egg importer over the eleven months with 4.7 million dozen valued at $9.0 million with a unit value of $1.91 per dozen. The reason for demand should be investigated with special emphasis on undiagnosed or undeclared HPAI in this or other Caribbean nations
Mexico was the fourth-ranked importer of shell eggs during January-November 2022 with 3.8 million dozen representing 6.0 percent of volume and 3.6 percent of total value corresponding to a unit value of $1.17 per dozen, 53.7 percent of the U.S. benchmark average of $2.17 per dozen for the eleven months. During November 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-November 2022 the remaining nations or regions of importance were the Caribbean other than Bahamas (5.0 million dozen) and the Middle East (3.2 million dozen with Israel comprising 81 percent due to HPAI and SE flock depletions). Other importing nations collectively received 10.2 million dozen representing 16.3 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; July, $2.71, August, $1.91, September $2.70, October $2.84 and November, $3.40.
EGG PRODUCTS
The total volume of exported egg products during January-November 2022 decreased by 27.4 percent to 23,313 metric tons compared to the corresponding months in 2021. Total value of $107.5 million was higher by 10.5 percent compared to the first eleven months of 2021. Unit value increased by 53.2 percent to $4,611 per ton, up from the $3,010 received during January-November 2021. 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
During November 2022 the U.S. exported 2,686 metric tons, up 7.9 percent in volume but lower by 27.6 percent in value compared to November 2021. The difference of $1,243 per ton in unit price reflects the composition of exports and the relationship between World supply and demand. Ukraine is now restrained in production but India was a significant exporter during the month.
Japan was the leading importer from the U.S. for January-November 2022 based on a value of $37.5 million and a volume of 8,163 metric tons that represented 35.0 percent of volume and 34.9 percent of the total value of U.S. exports of egg products, an increase of 1.3 percent in value compared with January-November 2021. The unit value of $4,594 per metric ton compares with the average unit value for U.S. exports of all egg products at $4,611. In November Japan imported 622 metric tons of egg products valued at $2.2 million with a unit value of $3,537 per metric ton. 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 also in value among importers, purchasing 6,773 metric tons over January-November 2022 comprising 29.1 percent of volume and 16.2 percent of value with a unit price of $2,569 per metric ton. During November 2022 Canada was the first-ranked importer by volume receiving 1,646 metric tons representing 61.2 percent of volume but 32.3 percent of value. Volume was 137.7 percent higher and value was 46.6 percent higher compared to November 2021. Volumes shipped reflect restoration of the institutional and food service sectors and availability of domestic product in Canada.
Mexico was third-ranked as an importer of egg products over January-November 2022 receiving 2,708 metric tons from the U.S. representing 11.6 percent of volume and 12.2 percent of value with a unit price of $4,834 per metric ton. Volume and value for the first eleven months of 2022 were down respectively 43.6 percent but up 18.0 percent. During November Mexico was third-ranked among importers with 195 metric tons valued at $1.2 million. Imports by Mexico in November decreased by 14.8 percent in volume and 50.0 percent in value compared to November 2021.
For the first eleven months of 2022 South Korea ranked fourth among importers by volume with 2,153 metric tons of egg products valued at $7.3 million was down 55.9 percent from January-November 2021 with high domestic demand despite increasing production by replacement flocks after HPAI depletion. During November 2021, South Korea was not an importer from the U.S. Most flocks in South Korea have been restored to production after HPAI although along with Japan seasonal cases of HPAI have been recently diagnosed. In 2021 South Korea imported 5,140 metric tons valued at $513.3 million up 133.3 percent from 2020.
The EU-27 imported 675 metric tons of U.S. egg products during the first eleven months of 2022 valued at $19.6 million with a unit price of $2,904. Volume and value of egg products exported to the EU were respectively 94.5 and 226.7 percent higher than for the eleven months of 2021. During November exports to the EU-27were negligible.
The Caribbean imported 1,136 metric tons valued at $5.0 million over the eleven months of 2022.
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-November 2022 exports amounted to $98.8 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 in 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.