Egg Industry Statistics and Reports


Updated USDA Projections for U.S. Egg Production

01/19/2021

The USDA Economic Research Service issued an updated forecast of egg production on January 19th 2021 revising the previous December 16th 2020 report. The January 2021 projection for 2020 production of 8,032 million dozen and per capita consumption of 285.9 were revised upward from 2019 by 2.8 and 19.1 percent respectively. The discrepancy between production and consumption in 2020 was partly offset by the substantial but transitory COVID-related rise in price during March and April. The average 2020 benchmark New York bulk unit price was reduced from 117 to 112 cents per dozen due to low prices during the third and fourth quarters. Subsequent USDA forecasts will provide greater clarity on reopening of the economy that is still depressed with high unemployment attributed to COVID restrictions.

 

For 2021 the USDA forecast of production was revised downward to attain 8,150 million dozen but up 1.5 percent from 2020 production with a disproportionate 0.8 percent increase in per capita consumption to 288.2 eggs. This will be reflected in a projected reduction in New York unit realization of 108 cents per dozen.

 

January 2021 data is shown in the table below:-

Parameter

2017

(actual)

2018

(actual)

2019

(revised)

2020
(projection)
2021
(forecast)
% Difference
2020-2021

Production (m. dozen)

7,811

8,042

8,265

8,032

8,150 +1.5

 

Consumption (eggs per capita)

282.1

287.8

293.6

285.9

288.2 +0.8

 

New York price (c/doz.)

101

138

94

112 108 -3.6

Source: Livestock, Dairy and Poultry Outlook –January 19th 2021

Subscribers to EGG-NEWS are referred to the postings depicting weekly prices, volumes and trends and the monthly review of prices and related industry statistics.


 

Egg Exports

01/09/2021

Export of Shell Eggs and Products, January-November 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 eleven months of 2020 with the corresponding period in 2019:-

 

PRODUCT

Jan.-Nov. 2019

Jan.-Nov. 2020

Difference

Shell Eggs

Volume (m. dozen)

134.2

133.0

 -1.2 (-0.9%)

Value ($ million)

105.6

111.1

+5.5 (+5.2%)

Unit Value ($/dozen)

0.78

0.84

+0.06 (+7.7%)

Egg Products

Volume (metric tons)

29,562

33,122

 +3,560 (+12.0%)

Value ($ million)

90.6

90.7

+0.1 (+0.1%)

Unit Value ($/metric ton)

3,064

2,738

-326 (-10.6%)

U.S. SHELL EGG AND EGG PRODUCT EXPORTS DURING JANUARY-NOVEMBER 2019 COMPARED WITH JANUARY-NOVEMBER 2020

Source USDA-FAS/USAPEEC

 

SHELL EGGS

Shell egg exports from the U.S. during the past eleven months of 2020 decreased by 1.2 percent in volume but increased 5.2 percent in total value compared to January-November 2019. Unit value was 7.7 percent higher or 6 cents per dozen for the comparison between 2020 and 2019. The top two importers, Hong Kong and Mexico combined, represented 66.9 percent of volume and 58.2 percent of total value.

 

Mexico was the leading importer of shell eggs over January-November 2020 with 45.5 million dozen representing 34.2 percent of volume and 27.8 percent of total value corresponding to a unit value of $0.67 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-November 2020 imports of shell eggs by Mexico increased by 79.1 percent in volume and 83.9 percent in value compared to January-November 2019. During November 2020 2nd-ranked Mexico imported 4.0 million dozen from the U.S., up 81.8 percent from November 2019 and valued at $3.3 million with a unit price of 83 cents per dozen, generally above the USDA benchmark nest-run production cost

 

Hong Kong was the second-ranked importer of shell eggs in January-November 2020, with 43.5 million dozen representing 32.6 percent of volume and 30.4 percent of the $111.1 million total value of U.S. shipments of shell eggs. Average unit value was $0.78 cents per dozen, similar to the average prevailing nest-run USDA benchmark price during the first three quarters of 2020.

 

Canada was a distant third in rank as an importer during January-November 2020 with 18.7 million dozen representing 14.0 percent of volume and 18.4 percent of total value at $20.4 million with a unit value of $1.09 per dozen. Canada reduced volume by 57.5 percent during January-November 2020 compared to 2019. With the advent of COVID-19, April consignments of shell eggs were down 80.6 percent from 2019 and in May, June and July exports were negligible. During August 2020 exports resumed with 3.2 million dozen shipped followed by 4.2 million dozen in September, 4.0 million in October but a sharp decrease to 1.0 million dozen in November. Shell eggs shipped to Canada represent the difference between domestic demand and production, limited by a national controlled marketing system that reduced farmers’ quotas.

 

The Middle East Region imported 10.0 million dozen during January-November 2020 valued at $7.9 million with a unit price of $0.78 per dozen. Volume and value in January-November 2020 were respectively higher by 81.8 percent and 64.5 percent compared to January-November 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 6.1 million dozen. Israel did not import any appreciable quantity of U.S. shell eggs during September through November.

 

The Caribbean Region represented 6.3 percent of export volume for January-November 2020. This region was up 40.0 percent in volume and 32.9 percent in total value, an obvious improvement compared with January-November 2019. The unit value of shell eggs exports to the Caribbean apparently averaged $1.25 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.

 

EGG PRODUCTS

The total volume of exported egg products during January-November 2020 increased by 12.0 percent and total value was higher by 5.2 percent compared to January-November 2019. Unit value decreased by 10.6 percent to $2,738 per ton from $3,064 recorded for January-November 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 $29.1 million and a volume of 8,153 metric tons that represented 24.6 percent of the total U.S. exports of egg products, an increase of 3.5 percent compared with January-November2019. The high unit value of $3,570 per metric ton compares with the average value for all exports of $2,738 or $2,467 excluding Japan. The discrepancy in unit price reflects the product mix. With conclusion of a bilateral trade agreement the U.S. will no longer be at a competitive disadvantage with respect to the E.U. Japan was down in volume by 16.8 percent to 714 metric tons in November.

 

Mexico continued as the second-ranked importer based on volume in January-November 2020 Mexico received 8,896 metric tons comprising 26.8 percent of export volume and 18.6 percent of value with a unit price of $1,899 per metric ton. Imports of egg liquid by Mexico increased over the first eleven months of 2020 by 56.2 percent over 2019. Mexico was down in volume by 55.6 percent to 356 metric tons in November.

 

Canada attained third in rank among importers purchasing 6,599 metric tons comprising 19.9 percent of volume and 16.7 percent of value with a low unit price of $1,900 per metric ton. During January-November 2020 Canada increased volume by 56.1 percent and value increased 37.3 percent compared to the first eleven months of 2019. During November 2020 Canada decreased volume by 49.1 percent compared to November 2019 to 411 metric tons.

 

Notable changes over the first eleven months of 2020 included a 28.2 percent increase in exports to the UK+EU of 1,841 metric tons representing 5.6 percent of volume valued at $9.5 million and at a unit price of $5,160 per metric ton. In November volume declined by 75.2 percent to 64 metric tons compared to November 2019. Unit value rose to $4,687 per 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 and one HPAI isolation in turkey flocks in the Carolinas are now officially over. In accordance with OIE principles embargos should not 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.


 

Egg Monthly

01/09/2021

REVIEW OF DECEMBER 2020 EGG PRODUCTION COSTS AND STATISTICS.

 

HIGHLIGHTS

  • December 2020 USDA ex-farm blended nest-run benchmark price was 57.4 cents per dozen, 30.4 percent lower than the November value of 82.5 cents per dozen. The downward price trend from mid-May through July is attributed to restoration of normal consumer purchasing patterns coupled with diversion of eggs from breaking to the shell-egg market. Currently stock levels and prices indicate a severe imbalance between supply and demand with low seasonal prices attributable to moderate over-production and diversion from the egg-breaking sector.
  • December 2020 USDA average nest-run production cost was 1.8 cents per dozen higher than in November 2020 at 68.2 cents per dozen due to feed cost.
  • December 2020 USDA benchmark nest-run margin attained a negative value of 10.4 cents per dozen compared to a positive margin of 16.1 cents per dozen in November 2020.
  • December 2020 national flock in production (over 30,000 hens/farm) was up 2.0 million hens or 0.7 percent to 309.0 million. There are approximately 3.2 million hens due to return to production from molt.
  • November 2020 pullet chick hatch was down 1.3 million from October 2020 to 24.0 million.
  • November 2020 export of shell eggs and products combined was down 9.7 percent from October 2020 to 642,000 case equivalents representing the theoretical production of 9.3 million hens.

 

INTRODUCTION.

Summary tables for the latest USDA December 2020 prices and flock statistics made available by the EIC on January 8th 2020 are arranged, summarized, tabulated and reviewed in comparison with values from the previous December 9th 2019 posting reflecting November 2020 cost and production data.


 


Cal-Maine Foods Reports on Q2 FY 2021

01/05/2021

In a press release dated January 5th Cal-Maine Foods (CALM) announced results for the 2nd Quarter of FY 2021 ending November 28th 2020.

 

The following table summarizes the results for the period compared with the values for the corresponding quarter of the previous fiscal year (Values expressed as US$ x 1,000 except EPS)

 

2nd Quarter Ending

Nov. 28th 2020

Nov. 30th 2019

Difference (%)

Sales:

$347,328

$311,522

+11.5

Gross profit:

$58,451

$29,375

+99.0

Operating income (loss):

$14,479

$(16,565)

+187.4

Pre-tax income (loss)

Net income (loss)

$15,917

$12,1551

$(15,049)

$(10,186)2

+205.8

+219.3

Diluted earnings (loss) per share:

$0.25

$(0.21)

+219.1

Gross Margin (%)

16.8

9.4

+78.7

Operating Margin (%)

4.2

(5.3)

+179.2

Profit (Loss) Margin (%)

3.5

(3.2)

+209.4

Long-term Debt and lease obligations:

$1,905

$2,387

-20.2

12 Months Trailing:

Return on Assets (%)

2.2

Return on Equity (%)

4.6

Operating Margin (%)

2.8

Profit Margin (%)

3.2

Total Assets

$1,200,355

$1,206,694

-0.5

Market Capitalization

$1,822,000

 

Note 1. Loss on disposal of fixed assets $99 million 

           2.Loss on disposal of fixed assets $212million . Loss attributable to non-controlling unit $125 million

 

52-Week Range in Share Price: $30.74 to $46.66 50-day Moving average $38.28

 

Market Close Jan. 5th pre-release $37.28. After-hours trading, post-release $40.00 (+7.3%)

 

Trailing P/E 40.8 Beta 0.2

 

In reviewing the CALM quarterly report the following calculated values* represent key data for the most recent Quarter. (Q2 Fiscal 2019 and percent difference in parentheses):-

 

  • Dozen shell eggs sold: 273,651,000 (261,026,000 +4.8)
  • Average selling price of all shell eggs: $1.24 per dozen; ($1.17 per dozen; +6.0%).
  • Average selling price of specialty eggs (excluding co-pack) calculated from data released: $1.87 cents per dozen; ($1.90 per dozen; -15%).
  • Average selling price of generic eggs calculated from data released: $1.02 cents per dozen; ($0.95 cents per dozen; +7.4%).
  • Differential between generic and specialty eggs: $0.85 cents per dozen; ($0.95 per dozen; -10.5%)
  • Specialty eggs as a proportion of volume sold: 26.4%; (23.5%; +12.3%)
  • Specialty eggs as a proportion of sales value: 39.7%; (38.2 %; +1.5%)
  • Proportion of eggs sold actually produced by Cal-Maine flocks: 92.1% (88.7% +3.8%;).
  • Feed cost per dozen 41.1 cents (41.6 cents -1.2%)

Dolph Baker Chairman and CEO

*Assumes that 98 percent of sales value derived from shell eggs.

 

Dolph Baker, Chairman and CEO of Cal-Maine Foods, Inc., stated, “Our results for the second quarter of Fiscal 2021 reflect favorable demand trends for shell eggs, primarily at the retail level as consumers continue to prepare more meals at home during the COVID-19 pandemic. Demand from food service customers has been less consistent and remains well below pre-pandemic levels, due in part to various restrictions on restaurants in place for different areas of the country.

 

Baker continued “We are especially grateful for the hard work and dedication of our employees who have worked to meet customer demand through extraordinary conditions. As the COVID-19 pandemic continues to affect our daily lives, our top priority is the health and safety of our employees, and we remain vigilant in managing our operations in a safe manner”.

 

In reviewing pricing Baker stated “market prices for eggs rose steadily in the early part of the second quarter and then leveled off for the remainder of the period. For example, the Urner-Barry Southeastern Regional Large Price for conventional eggs for the second quarter of 2021 was $1.21 per dozen, up 3.5 percent compared to $1.17 for the second quarter of fiscal 2020, and our average sales price was up 5.8 percent compared with the prior-year second quarter. We did not experience a typical seasonal spike in market prices around Thanksgiving; the UB southeastern large index peaked on October 8, 2020, at $1.30 and then declined to $1.20 at quarter close.

 

The supply-demand situation was addressed as “The overall supply of eggs reported by the United States Department of Agriculture declined in the second quarter of fiscal 2021 compared to the same period last year. The USDA also reported that the hatch from July through November 2020 decreased 1.5 percent as compared to the same period last year, and hen numbers reported by the USDA as of December 1, 2020, were 325.2 million, which represents 15.6 million fewer hens than a year ago. However, the decreased hen and egg supply has been offset by the decreased food service demand as noted above”.

 

In relation to the transition to cage-free housing Baker stated "We have continued to take aggressive steps to position Cal-Maine Foods to meet the expected future demand for cage-free eggs. As a growing number of states have passed legislation requiring cage-free eggs by specified future dates, we are working closely with our customers who are transitioning to meet expected requirements. Over the past twelve years, we have invested approximately $405 million in facilities, equipment, and related operations to expand our cage-free production. In addition, we have committed another $57.8 million towards the production of cage-free facilities, including the latest $40.1 million conversion project, previously announced on December 15, 2020, at our production facility in Guthrie, Kentucky. Together with our other cage-free expansion projects, we believe we will continue to enhance our ability to provide exceptional service and distribution capabilities to our customers”.

 

Future uncertainties were addressed by Baker as “feed costs started trending higher midway through the second quarter and continued volatility is expected for the remainder of fiscal 2021 as increased export demand for both soybeans and corn is placing pressure on domestic supplies. Additionally, the ongoing uncertainties and supply chain disruptions related to the COVID-19 outbreak, weather fluctuations and geopolitical issues surrounding trade agreements and international tariffs will continue to affect market prices for our primary feed ingredients.

 

Baker concluded “we are pleased with our ability to respond to dynamic market conditions and manage our operations in the face of the unprecedented challenges created by the COVID-19 pandemic. While we are still facing an uncertain environment, we believe retail demand for eggs will remain strong, and we are optimistic that effective vaccines will soon be widely available, restoring consumer confidence and allowing restaurants and food service operators to resume regular schedules.


 

USDA DATA ON DECEMBER CAGE-FREE PRODUCTION

01/04/2021

EGG-NEWS summarizes and comments on data and trends in the monthly USDA Cage-Free Report, and correlating the information posted weekly on the EGG-NEWS Egg Weekly Price and Inventory Report.

 

The USDA Cage Free Report for the month of December 2020 released on January 4th 2021 documented no material change in the population of hens producing under the Certified Organic seal at 17.2 million. Cage free flocks totaled 62.6 million fractionally down from November  (rounded to 0.1 million). The respective numbers of hens in organic and cage-free flocks should reflect the realities of supply and demand in the market over successive quarters.  It is evident that a high proportion of organic and cage-free eggs are down-priced to the generic category when comparing Nielsen retail sales data with potential production based on hen numbers.

 

Average flock production was raised to 80.8 percent in December for both categories of non-caged hens reflecting younger flocks but not materially increasing the availability of cage-free and organic eggs combined. Average flock production represents a balance between older flocks and the higher relative production from pullet chicks placed during June and July 2020 and molted hens resuming production during the month.

 

Flock size             Dec.      Av. Q4

(million hens)                       2020

Av. Q3

2020

Av. Q2

2020

Av. Q1

2020

Certified Organic   17.2        17.2

16.2

15.7

15.7

Cage-free hens       62.6        62.8

62.9

61.5

56.3

Total non-caged     79.8        80.0

79.1

77.2

72.0

Average weekly production (cases)

November

December

Certified Organic

   268,390

   269,224  + 0.3%

Cage-free

   984,701

   983,441    -0.1%

Total non-caged

1,253,091

1,252,665   <0.1%

 

Average Whole Contact Price Cage-Free Brown

$1.51/doz.   ($.51 Sept. to Nov. 2020)

Range:

$1.15 to $1.90/doz.   (unchanged from Nov.)

FOB Negotiated price, grade quality, nest-run.  Loose

Price range $1.15 to $1.94 per dozen

Average Value of $1.38/doz. (was $1.42 Nov.)

 


 

USDA-WASDE FORECAST #607 December 10th 2020

12/10/2020

OVERVIEW

The December 10th 2020 USDA WASDE Report was updated from the November edition with no change in either corn or soybean harvest. December values are based on actual harvest areas and yields. The corn acreage harvested is currently estimated at 82.5 million acres, unchanged from the November 10th WASDE report. Soybeans will be harvested from 82.3 million acres, unchanged from the December 10th WASDE report.

 

The December 2020 WASDE estimate of corn yield was retained at 175.8 bushels per acre, (168.0 bushels per acre in 2019). The estimate of soybean yield was retained at 50.7 bushels per acre. (47.4 bushels per acre in 2019)

 

The December USDA projection for the ending stock of corn was held at 1,702 million bushels. Due to exports the ending stock for soybeans was reduced by 7.9 percent to 175 million bushels.

 

Projections for ending stocks of both corn and soybeans have influenced recent CME price quotations concurrently with increased compliance with the Phase-One trade agreement with China. The November WASDE projected the corn price to be $4.00 per bushel and soybeans at 1,055 cents per bushel.

 

It is presumed that projections are based on the assumption that China will as far as possible honor commitments that were disrupted during the first quarter of 2020 by COVID-19. China booked substantial orders for corn and soybeans delivered through August for the 2019-2020 market year in addition to large quantities booked from September onwards for the 2020-2021 market year. Reports on volumes of commodities exports to China will be included in upcoming editions of CHICK-NEWS and in subsequent mailings as data becomes available.

 

CORN

The corn harvest for 2020 documented in the December 2020 WASDE Report #607 is 14,507 million bushels consistent with actual data. The projected 2020 harvest can be compared to 2019 at 13,692 million bushels and is 4.2 percent lower than the previous 2016 record harvest of 15,148 million bushels. The “Feed and Residual” category was unchanged at 5,700 million bushels. The “Ethanol and Byproducts” category was retained at 5,050 million bushels despite reduced domestic demand for E-10 due to COVID-19 restrictions and competition in the export markets. Corn exports were held at 2,650 million bushels in the face of intense competition from Brazil and Argentine and high world domestic coarse grain production relative to demand. Ending stocks were unchanged at 1,702 million bushels.

 

The forecast USDA farm price for corn was held at 400 cents per bushel. At 13H00 on December 10th after release of the WASDE the CME quotations for December and March corn were 422 cents and 424 cents per bushel down 0.2 percent and 1.7 percent respectively from quotations on November 10th.


 


USDA-WASDE FORECAST #607 December 10th 2020

12/10/2020

OVERVIEW

The December 10th 2020 USDA WASDE Report was updated from the November edition with no change in either corn or soybean harvest. December values are based on actual harvest areas and yields. The corn acreage harvested is currently estimated at 82.5 million acres, unchanged from the November 10th WASDE report. Soybeans will be harvested from 82.3 million acres, unchanged from the December 10th WASDE report.

 

The December 2020 WASDE estimate of corn yield was retained at 175.8 bushels per acre, (168.0 bushels per acre in 2019). The estimate of soybean yield was retained at 50.7 bushels per acre. (47.4 bushels per acre in 2019)

 

The December USDA projection for the ending stock of corn was held at 1,702 million bushels. Due to exports the ending stock for soybeans was reduced by 7.9 percent to 175 million bushels.

 

Projections for ending stocks of both corn and soybeans have influenced recent CME price quotations concurrently with increased compliance with the Phase-One trade agreement with China. The November WASDE projected the corn price to be $4.00 per bushel and soybeans at 1,055 cents per bushel.

 

It is presumed that projections are based on the assumption that China will as far as possible honor commitments that were disrupted during the first quarter of 2020 by COVID-19. China booked substantial orders for corn and soybeans delivered through August for the 2019-2020 market year in addition to large quantities booked from September onwards for the 2020-2021 market year. Reports on volumes of commodities exports to China will be included in upcoming editions of CHICK-NEWS and in subsequent mailings as data becomes available.

 

CORN

The corn harvest for 2020 documented in the December 2020 WASDE Report #607 is 14,507 million bushels consistent with actual data. The projected 2020 harvest can be compared to 2019 at 13,692 million bushels and is 4.2 percent lower than the previous 2016 record harvest of 15,148 million bushels. The “Feed and Residual” category was unchanged at 5,700 million bushels. The “Ethanol and Byproducts” category was retained at 5,050 million bushels despite reduced domestic demand for E-10 due to COVID-19 restrictions and competition in the export markets. Corn exports were held at 2,650 million bushels in the face of intense competition from Brazil and Argentine and high world domestic coarse grain production relative to demand. Ending stocks were unchanged at 1,702 million bushels.

 

The forecast USDA farm price for corn was held at 400 cents per bushel. At 13H00 on December 10th after release of the WASDE the CME quotations for December and March corn were 422 cents and 424 cents per bushel down 0.2 percent and 1.7 percent respectively from quotations on November 10th.


 


USDA Agricultural Prices Report

11/02/2020

THE USDA Agricultural Prices Report posted September Prices for agricultural commodities and expenditures. The index for prices received rose 0.9 percent from August. The index for prices paid was up 0.4 percent, widening margins. The ratio of prices received to prices paid was 81 percent in September compared with 80 percent in August 2020 and September 2019.

 

The USDA ERS detailed prices as follows:-

The September Prices Received Index (2011 Base for Agricultural Production at 89.0), increased 0.9 percent from August and 1.1 percent from September 2019. At 93.7, the Crop Production Index was up 1.3 percent from last month and 5.9 percent from September 2019. The Livestock Production Index, at 84.1, increased 0.2 percent from August, but decreased 3.7 percent from September 2019. Producers received higher prices during September for lettuce, hogs, corn, and soybeans but lower prices for milk, broilers, potatoes, and hay. In addition to prices, the indexes are influenced by the volume change of commodities producers market. In September, there was increased monthly movement for soybeans, corn, apples, and dry beans and decreased marketing of cattle, wheat, cotton, and strawberries.

 

The September Prices Paid Index for Commodities and Services, Interest, Taxes, and Farm Wage Rates (PPITW), at 110.3, was up 0.4 percent from August 2020 and 0.6 percent from September 2019. Higher prices in September for feeder pigs, feed grains, complete feeds, and supplements more than offset lower prices for hay and forages, feeder cattle, other services, and LP gas.

 

Corn farmers received $3.41 per bushel in September 2020 compared to $3.80 per bushel in September 2019, down 11.4 percent.

 

Soybean farmers received $9.24 per bushel in September 2020 compared to $8.35 per bushel in September 2019, up 10.7 percent.


 

USDA GAIN Report Updates Egg Production in Mexico

08/25/2020

Mexico is a significant importer of U.S. eggs and was ranked second to Hong Kong during January through June 2020. Mexico purchased 23.0 million dozen, representing 35.3 percent of volume and 28.5 percent of total U.S. shell egg export value with a unit price of $0.73 per dozen.  Mexico is also the second-ranked importer of egg products receiving 6,320 metric tons, comprising 31.5 percent of U.S. export volume and 21.2 percent of value, with a unit price of $1,788 per metric ton.

 

The USDA GAIN Report MX2020-0042, dated August 15th 2020, estimates annual production in 2020 at three million metric tons including both shell eggs and egg products, corresponding to 50.1 billion dozen.  This conversion is based on the assumption that one metric ton of shell eggs represents 16,700 dozen.  Accepting a 78 percent average hen-day production, the flock in Mexico is estimated at 185 to 190 million hens.


Proan Feed mill

 

Due to an ongoing recession which commenced in 2019 and is exacerbated by COVID restrictions, egg production remained static between 2019 and 2020, but should increase by 3.3 percent in 2021.  Mexico is a net importer of 68,260 metric tons of shell eggs and egg products representing 2.2 percent of current production.  Given a population of 129 million, consumption of both shell eggs and egg products amounts 393 per capita.  Consumption is projected to increase by 3.8 percent in 2021 with a corresponding 3.3 percent increase in domestic production, requiring a higher level of imports.

 

According to the GAIN report, eggs have undergone a marked increase in price from mid-2019.  Industry data suggests that wholesale prices are now in the region of $1.25 per dozen compared to $0.82 in August 2019.  USDA anticipates the U.S. remaining the major supplier to Mexico, especially with the finalization of the USMCA.  Brazil relinquished market share to the U.S. with the loss of their third-country tariff rate quota.

 

The joint promotional endeavors of the AEB and the USAPEEC are critical to maintaining the goodwill of customers and consumer groups. Promotional activities include seminars and webinars directed to specific user groups in Mexico and programs intended to facilitate transport and customs clearance for U,S exporters.


 




































































































































































































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