Export of Shell Eggs and Products, January-October 2024.

The volume of exports of shell eggs is conditioned by the domestic needs of importers, price against competitors and regulatory disease and logistic restraints. The effect of price is demonstrated by the 182 percent drop in volume of shell egg exports from 2021 (198 million dozen) to 2022 (70 million dozen). Due to depletion of flocks in 2023, export prices increased 113 percent from $1.02 per dozen to $2.16 per dozen reflecting domestic prices. Depressed exports persisted in 2023 with 90 million dozen shell eggs exported at an average price of $1.80 per dozen. Losses from HPAI that rose in the last quarter led to a rise in domestic price. This situation persisted through the first half of 2024 but with prospects for improved volume based on prices stabilizing moderately above seasonal levels through the 4^th quarter.

It is probable that lost markets other than in the USMCA and Caribbean could eventually be reclaimed but not over the intermediate term. Sporadic and short-term exports may be made to various nations based on supply disruption caused by HPAI or other factors.

USDA-FAS data collated by USAPEEC, reflecting export volume and values for shell eggs and egg products are shown in the table below comparing 2024 with 2023:-

U.S. EXPORTS OF SHELL EGG AND EGG PRODUCTS DURING JANUARY-OCTOBER 2024 COMPARED WITH 2023

SHELL EGGS

Shell egg exports from the U.S. during the first ten months of 2024 declined by 8.3 percent in volume but was up 15.6 percent in total value compared to the corresponding months in 2023. Unit value increased by 26.4 percent to $2.30 per dozen compared to the corresponding period in 2023.

Shell egg exports from the U.S. during October 2024 declined by 13.2 percent in volume to 7.2 million dozen but were higher by 65.1 percent in total value to $17.5 million compared to the corresponding month in 2023. Unit value increased by 87.5 percent to $2.40 per dozen compared to October 2023.

Canada was the leading importer of shell eggs during the first ten months of 2024, with 50.2 million dozen representing 72.6 percent of volume and 73.2 percent of the total value of U.S. shipments of shell eggs. Unit price over January-October 2024 was $2.32 per dozen compared to $2.14 per dozen for all consignments in January-October 2023. Imports by Canada are driven by consumer demand balanced against availability through the controlled supply situation. This structure inhibits flexibility, necessitating imports from the U.S. to supply shortfalls especially when losses occur due to HPAI or under conditions of high demand. This model assures the Nation’s approximately 1,000 independent producers a stable income but is supported by higher prices to consumers. During October 2024 Canada imported 5.5 million dozen up 37.5 percent over the corresponding month in 2023. Value was up 165 percent to $13.5 million. Unit value was 90.6 percent higher to $2.45 per dozen.

The Caribbean Region (Bahamas, Netherlands Antilles, Cayman Islands, and others) was a distant second in shell egg imports from the U.S. valued at $26.1 million during January-October 2024, with 11.4 million dozen representing 16.5 percent of volume and 16.4 percent of the total value of U.S. shipments of shell eggs. Unit price over January-October 2024 was 13.5 percent higher to $2.29 per dozen.

Mexico was a distant third-ranked importer of shell eggs over January-October 2024 based on a volume of 2.0 million dozen representing 2.9 percent of export volume and 2.3 percent of value. Unit value of $1.80 per dozen is compared to an average value of $2.30 per dozen for all exports. During October 4^th-ranked Mexico imported 0.2 million dozen shell eggs from the U.S. valued at $0.4 million principally as breaking stock.

EGG PRODUCTS

The total volume of exported egg products during the past ten months of 2024 decreased 15.3 percent to 21,193 metric tons compared to January-October 2023. Total value of $95.8 million was lower by 12.8 percent compared to January-October 2023. Unit value increased by 3.0 percent to $4,522 per ton compared to January-October 2023. During 2023 the U.S. exported 29,814 metric tons of egg products valued at $134.3 million with a unit price of $4,505 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.

Japan was the leading importer by volume of U.S. egg products during January-October 2024 receiving 6,196 metric tons from the U.S. valued at $28.2 million representing 29.2 percent of volume and 29.4 percent of value with a unit price of $4,551 per metric ton. Volume for January-October 2024 was down by 31.5 percent and value was lower by 36.2 percent compared to the corresponding months in 2023. During October 2024 Japan imported 633 metric tons, down 9.4 percent over the corresponding month in 2023. Value was down 21.1 percent to $3.0 million and unit value was 12.8 percent lower at $4,739 per metric ton. During 2023 Japan imported 10,352 metric tons of egg products from the U.S., valued at $49.9 million. With the conclusion of a bilateral trade agreement, the U.S. should no longer be at a competitive disadvantage with respect to the E.U.

Mexico was the 2^nd ranked importer from the U.S. during January-October 2024 based on a volume of 4,193 metric tons with a value of $16.7 million, representing 19.8 percent of volume and 17.4 percent of the total value of U.S. exports of egg products. Exports to Mexico were up by 12.3 percent in volume but 9.7 percent lower in value compared to January-October 2023. The unit value of $3,982 per metric ton can be compared with the average unit value for U.S. exports of all egg products at $4,521 per metric ton. During October 2^nd- ranked Mexico imported 340 metric tons valued at $1.9 million. Volume was 153.7 percent higher and value was 137.5 percent above October 2023 achieving a unit value of $5,588 per metric ton.

Canada was the 3^rd-ranked importer over January-October 2024 based on a volume of 3,169 metric tons with a value of $12.7 million. Canada represented 15.0 percent of volume and 13.2 percent of value with a unit price of $4,008 per metric ton. During October Canada was 4^th- ranked as an importer with 253 metric tons representing 15.9 percent of exports of egg products down 25.0 percent from September 2023. Value was $1.8 million or 22.6 percent of the monthly total, down 25.1 percent from October 2023 with unit revenue of $4,743 per metric ton. Volumes shipped reflect restoration of the institutional and food service sectors. The relative availability of domestic product in Canada is currently adequate but with prospects of increased need for imports due to HPAI outbreaks.

The E.U.-27 maintained 4^th-ranked position among importers of U.S. egg products over the past ten months of 2024 with 2,128 metric tons. Value was $16.8 million with a high unit price of $7,895 per metric ton reflecting product mix. During October the E.U. imported 320 metric tons of egg products valued at $2.1 million with a unit price of $6,402 per metric ton, up 124.7 percent in volume but down 8.7 percent in value.

South Korea was ranked 5^th among importers of egg products during January-October 2024 with a volume of 1,358 metric tons. Export value was $5.5 million with a unit value of $4,050 per metric ton. Comparing these values with the corresponding months in 2023, volume was 94.6 percent higher and value was up by 48.7 percent. Most flocks in South Korea have been restored to production after depopulation following 2022-3 outbreaks of HPAI. Import volume will be influenced by the trend in flock depletions. South Korea imported 44 metric tons during September 2024 but no product since. During 2023 South Korea imported 1,141 metric tons valued at $5.3 million. Depending on severity, the return of HPAI may result in a disparity between local availability and demand requiring imports in 2024 as in 2022.

COMMENTS

Exports to Canada and Mexico combined in 2022 amounted to $126.5 million in value equivalent to 47.5 percent of the total value of shell eggs and products shipped. During 2023 exports valued at $150.7 million represented 50.8 percent of shell egg and egg products amounting to $296.5 million. Canada represented 59.0 percent of the $162.2 million for shell eggs and 10.3 percent of egg products valued at $121.2 million, consigned during 2023, emphasizing dependence on this USMCA partner. Over the past ten months of 2024 the USMCA imported shell eggs and products valued at $149.4 million. This represented 58.6 percent of all U.S. egg and product exports valued at $254.8 million.

Aspirational volumes of exports in excess of five percent of domestic production are unrealistic. The E.U., Japan, South Korea and Taiwan will indent according to their needs for undifferentiated shell eggs and products based on landed price in a competitive world market. Purchase decisions for commodities are determined by FOB price, freight, duty and broker margins. Shell eggs and the various categories of egg products are essentially commodities and generally do not respond to promotion. The recent appointment of a manager responsible for promoting exports and trade-related missions (‘junkets’) are inconsistent with prudent use of check-off funds. This opinion is based on an understanding of the factors motivating imports comprising need and price. The reality is that U.S. exports are heavily concentrated among our two USMCA partners in addition to the Caribbean region based on proximity and price.

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.

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