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Egg Exports

09/07/2019

Export of Shell Eggs and Products January-July 2019.

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 2019 with the corresponding period in 2018:-

PRODUCT

Jan.-July 2018

Jan.-July 2019

Difference

Shell Eggs

     

Volume (m. dozen)

63.3

75.6

+12.3 (+19.4%)

Value ($ million)

75.2

59.7

-15.5 (-206%)

Unit Value ($/dozen)

1.19

0.79

-0.40 (-33.6%)

Egg Products

 

 

 

Volume (metric tons)

19,120

17,578

-1,542 (-9.6%)

Value ($ million)

69.0

56.2

-12.8 (-18.6%)

Unit Value ($/metric ton)

3,608

3,197

-411 (-11.4%)

U.S. SHELL EGG AND EGG PRODUCT EXPORTS DURING

JANUARY-JULY 2019 COMPARED WITH 2018

Source USDA-FAS/USAPEEC

SHELL EGGS

Shell egg exports from the U.S. during the first seven months of 2019 increased by 12.3 percent in volume but declined 15.5 percent in total value compared to Jan.-July 2018. Unit value was lower by 33.6 percent or 40 cents per dozen for the seven-month comparison between 2018 and 2019. The top two importing nations represented 72.5 percent of volume and 68.8 percent of total value.

Hong Kong was the leading importer of shell eggs for Jan.-July 2019, with 24.0 million dozen representing 40.0 percent of volume and 42.6 percent of the total value of U.S. shipments of shell eggs with an average unit value of $0.81 cents per dozen, above the average USDA benchmark price for nest-run during the second quarter.

Canada was the 2nd-ranked importer during Jan.-July 2019 with 24.0 million dozen representing 31.7 percent of volume and 26.6 percent of total value at $15.3 million with a unit value of $0.64 per dozen. Shell eggs shipped to Canada represent the difference between domestic demand and production, limited by their national controlled marketing system

Mexico was a distant third in rank during Jan.-July 2019 with 15.3 percent of volume and 12.7 percent of total value, at a unit value of $0.66 per dozen. Prospects for additional sales will depend on acceptance of washed eggs held under refrigeration for retail sale, expected in September. For the seven-month period in 2019 imports of shell eggs by Mexico increased by 274.2 percent and value by 137.5 percent compared to the corresponding period in 2018.

The Caribbean Region represented 5.4 percent of export volume for the first seven months of 2019. This region was down 19.4 percent in volume and 94.7 percent in total value compared with 2018. The unit value of shell eggs exports to the Caribbean averaged $1.32 per dozen for Jan.-July 2019 ($1.93 over entire 2018) which appears high compared with the average export realization, warranting validation of USDA data or an investigation of the price discrepancy. It is possible that a proportion of shell eggs enumerated may have been either fertile hatching eggs or enriched specialty eggs.

The Middle East Region imported 2.8 million dozen during the first seven months of 2019 valued at $2.7 million with a unit price of $0.96 per dozen. Volume and value were respectively lower by 31.7 percent and 30.8 percent compared with the corresponding period in 2018. Israel emerged as an importer at the end of 2018 attributed to depletion of domestic flocks due to SE. Southern E.U. nations have a transport advantage over the U.S in this market.

EGG PRODUCTS

The total volume of exported egg products during the first seven months of 2019 decreased by 9.6 percent and total value was lower by 18.6 percent compared to the same period in 2018. Unit value decreased by 11.4 percent to $3,197 per ton from $3,608 obtained during Jan.-July 2018. This decline reflected the relationship between World supply and demand.

During Jan.-July 2019, 1st-ranked Japan represented 26.9 percent of the total U.S. export volume with 4,726 m. tons, a decrease of 33.0 percent compared with the first seven months of 2018. Unit value of $4,020 per m. ton reflects the product mix including yolks.

Mexico was the second ranked importer during Jan.-July 2019 receiving 3,619 metric tons comprising 20.6 percent of volume and 14.5 percent of value exported with a unit price of $2,266 per metric ton

Canada represented the 3rd rank among importers purchasing 3,339 m. tons comprising 19.0 percent of volume and 12.8 percent of value ($7.2 million) exported with a unit price of $2,156 per m. ton. During the seven-month period in 2019 Canada increased volume by 26.4 percent and value by 12.5 percent compared to the corresponding period in 2018.

During the first seven months of 2019, 4th-ranked E.U-28 imported 621 m. tons of egg products, representing 3.5 percent of volume and 10.9 percent of value shipped during Jan.-July 2019 at $2,156 per metric ton.

COMMENTS

Successful conclusion of negotiations to replace NAFTA led to the trilateral USMCA, announced on September 30th 2018. The agreement will have to be ratified by the legislatures of Canada and the U.S. eleven months after signing the agreement. Exports of shell eggs and egg products to our neighbors were valued at $74.7 million for 2017 and $89.7 million for 2018 and $47.6 million over the first seven months of 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, with the noted exception of China, are now applying regionalization and permitting imports on a county or state-exclusion basis following H5 or H7 AI infection.

The seventeen-month ongoing series of incident cases of END involving 490 backyard flocks, predominantly game fowl (fighting cocks), appears to be ending. Extension of the infection to four commercial farms in Southern California in late 2018 did not impact exports since importers are complying with the OIE principle of regionalization.

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