Egg-News

Editorial


Avian Influenza Update - April 2025

 

This special edition of EGG-NEWS provides commentary on recent publications, reports and events relating to highly pathogenic avian influenza (HPAI).  As of mid-April, outbreaks have ceased among large egg production and pullet rearing complexes.  Notwithstanding this hiatus, evident since the beginning of March, incident cases are reported among backyard flocks, turkey growing facilities and at live bird markets suggesting extension from reservoirs of infection.  Cessation of new cases in large egg production complexes is attributed to the end of seasonal migration of waterfowl that have now settled into their annual breeding cycle.  Sporadic cases are probably due to shedding of H5N1 virus by non-migratory domestic birds.  Given experience in recent years we can anticipate a resurgence of infection in the fall as the southward migration commences impacting farms along the Pacific, Central and Mississippi flyways.  This period of low HPAI activity should be used to strengthen biosecurity and to initiate protective vaccination of rearing pullets in high-risk areas in order to develop an immune population that will be challenged during the third and fourth quarters of 2025.

 

 

Noteworthy publications and events over the past two weeks relating to HPAI are reviewed for the benefit of subscribers:-

 

 

HPAI Vaccination Work Group Submits Proposal

 

A working group comprising Drs. John Clifford, Craig Rowles, Travis Schaal and David Swayne distributed a proposed vaccination plan dated April 1, 2025, to respond to highly pathogenic avian influenza (HPAI) in the U.S. egg industry.  The Working Group was convened by the United Egg Producers and the American Egg Board representing U.S. egg producers. The document includes factual information on the availability and efficacy of vaccines and incorporates sections on monitoring for effective immunization and surveillance to facilitate certification for export.

 

Essentially the document confirms what many in the industry have recognized as the futility of the USDA-APHIS response of attempting to ‘stamp out” the endemic infection given the unprecedented depopulation of over 130 million egg laying hens on more than 130 farms since the onset of the current H5N1 epornitic that commenced in 2022.

 

 

The summary correctly maintains that “a new approach to reduce layer and pullet flock susceptibility to HPAI virus should be considered to increase resistance to infection, reduce viral shedding and importantly reduce the risk of a potential mutation event that may lead to further HPAI infection in human.”  The document suggests a program under which flocks could be vaccinated with a priority for replacement pullets.  The report correctly stresses the need for high levels of biosecurity, echoing the recommendations of the World Organization of Animal Health. 

 


Vecor vaccination  in ovo  or S.Cut to chicks with booster

Oil-emulsion vaccine im during rearing

 

The report failed to stress the impact of flock depletion on egg prices and the cost to consumers that exceeded $15 billion in 2022 and considerably more in 2024 with an additional escalation in prices peaking at $8.50 per dozen at retail in late February 2025, reflecting the loss of approximately 30 million hens over an eight-week period.

 

The zoonotic potential of H5N1, deserved more than seven lines in a text extending over 13 pages.  Virologists and epidemiologists involved in monitoring aspects of the molecular biology of influenza have constantly stressed the risk of emergence of a zoonotic strain of H5N1 with possible human-to-human transmission.

 

One of the authors of the report is a distinguished researcher and has extensive experience in international regulation of avian diseases.  A member of the committee authoring the document is a prior Chief Veterinary Officer of the USDA responsible for the response to the 2015 HPAI epornitic.  Following retirement, he has served as an advisor to the USA Poultry and Egg Export Council that has a single-purpose commitment to maintaining the export volume of broiler leg quarters.  It does not appear from the document that his affiliation in any way affected his scientific objectivity. It would have been possible to have made a more definitive and stronger case for vaccination with a broader representation from among the industry.

 

The return of incident cases during the fall migration of waterfowl is inevitable. The current ongoing outbreaks may be attributed to resident avian and mammalian carriers. Recognition that the infection can be transmitted by the aerogenous route invalidates even strict structural and operational biosecurity and places large complexes with power ventilation at risk. The need for vaccination especially in high-risk regions along the Mississippi and Pacific flyways is self-evident.  The proposal to vaccinate pullets is obvious but will delay creation of an immune population due to the biological time restraints associated with rearing. 

 

The report notes, “Vaccination of caged in-lay hens is challenging and potentially unachievable in cage-free operations.” This appears to be a questionable assertion.  When the industry was confronted with severe coryza in 2023, egg producers effectively administered oil emulsion vaccines by the intramuscular route to hens in both cages and aviaries in the face of infection.

 

This commentator strongly supports the recommendation contained in the summary, “The industry believes that it time to enhance our overall strategy to control the virus through implementing vaccination in egg laying flocks.”  In contradistinction he final paragraph relating to “acceptability to the federal government, state animal health officials” is the major defect of the report inducing a wishy-washy, non-definitive approach ending with “We look forward to further discussion with USDA about the proposal.” 

 

 

Effectively if the broiler segment of the poultry industry is still opposed to vaccination of egg production flocks and possibly growing turkeys in high-risk regions, despite appropriate monitoring and surveillance, all we will have is more discussion and temporizing without action.  The so-called four-pronged program advocated by the newly appointed Secretary of Agriculture is effectively smoke-and-mirror, more of the same widow dressing.  It appears that USDA-APHIS either through disinclination to accept realities or acting under the duress of exporters will continue to discuss, research, evaluate, and consider vaccination while continuing to implement whack-a-mole flock depopulation at the expense of taxpayers, producers and consumers. The essence of the report is reminiscent of the sentiments attributed to St. Jerome who prayed for chastity-- but not right away.

 

Prominent Health Advocate Comments on the Need for Vaccination Against HPAI

 

Dr. Scott Gottlieb, a physician, investor in medical companies and a director of pharmaceutical enterprises previously served as the 23rd Commissioner of the Food and Drug Administration in the first administration of President Trump.  He recently authored a commentary pointing to the need for vaccination of poultry flocks using currently available commercial off-the-shelf products.  In his commentary he justifiably castigated Robert F. Kennedy, Jr., Secretary of the Department of Health and Human Services, who advanced the inane suggestion that HPAI should be allowed to spread unchecked through flocks in the hope that a few survivors would express genes for resistance to avian influenza.

 

 

Dr. Gottlieb correctly maintains that the egg industry must use the current seasonal quiescent stage of the epornitic before resumption of migration in the fall to establish immunity among flocks at risk.  He expresses this sentiment as, “We have vaccines for bird flu made by American companies and used overseas but so far federal officials don’t seem poised to use them here.”  He points to the deployment of vaccines in France, China and Mexico among other nations and cast doubt on the various distortions of science advanced by opponents of vaccination to support ongoing exports of broiler leg quarters.

 

Applying logic and common sense, Dr. Gottlieb notes that, “The avian influenza strains now in circulation have persisted continuously among birds and mammals for nearly two years and there’s growing evidence that it could become a permanent feature of North America – part of a the new normal to which the poultry industry must inevitably adjust for both the physical and economic health of Americans.”

 

Influenza H5N1 is clearly endemic in the U.S. and in the poultry industries of many nations. The incidence rate can be suppressed to some extent by strict structural and operational biosecurity involving investment and management.  Notwithstanding the stringency of biosecurity, there is little that can be done to prevent aerogenous transmission especially into power-ventilated houses located on multi-aged egg production complexes.

 

Avian influenza is effectively The Newcastle Disease of the 2020s. During the 1970s Velogenic viscerotropic  Newcastle disease (VVND=END) in Europe, Asia and Africa was in every way as catastrophic as avian influenza but was effectively controlled principally by vaccination supported by biosecurity.

 

It is questioned why a clear thinking and well-connected physician should have a greater appreciation of the risks, consequences and potential control measures to reduce the economic and potential zoonotic impact of avian influenza compared to the administrators of USDA-APHIS. Is the firm recommendation for vaccination advanced by Dr. Gottlieb an expression of epidemiologic reality or is it that Dr. Gottlieb is an independent scientific voice unfettered by conflicts of interest? 

 

Introduction of the SAVE Our Poultry Act

 

U.S. Representatives Sarah McBride, (D-DE) and Mike Lawler, (R-NY) introduced the Supporting Avian Virus Eradication (SAVE) Our Poultry Act that is intended to elevate the standard of biosecurity and to encourage research into protection including immunization.

 

In announcing the proposed legislation, Rep. McBride stated, “The SAVE Our Poultry Act is about supporting our farmers and their efforts to protect their animals, their markets and their future.”  According to an April 10th release by Rep. McBride, the intended legislation would:

 

  • Authorize USDA research grants to study highly pathogenic avian influenza
  • Analyze the impact of poultry vaccination on international trade and market access
  • Fund enhanced biosecurity practices and disinfection methods for poultry producers

 

The press release justifiably notes the high prices for eggs as a result of depopulation of flocks and pointed to the support by the National Chicken Council (NCC) representing broiler producers, the United Egg Producers and regional poultry associations with members at risk of or having experienced losses as result of HPAI. Specifics of the Bill that would amend the Food, Agriculture, Conservation and Trade Act of 1990 emphasizes HPAI as a “high priority research and extension area”.

 

Among other components the bill makes provision for grants to colleges and universities to “research the effectiveness of vaccines across poultry species, improve formulations of vaccines and improve the delivery mechanisms for vaccines.  This is in itself commendable but ignores the reality that both subunit vector vaccines are available off-the-shelf together with inactivated oil emulsion products that could be deployed immediately following approval and authorization for use by USDA-APHIS.  Ongoing research is obviously beneficial, but the infection is expected to return within months and research envisaged in the SAVE Our Poultry Act would do nothing to reduce losses in 2025 through 2026.

 

A provision of the bill goes to the core of the disinclination by USDA to allow vaccination.  The SAVE Our Poultry Act would involve “assessing the potential implications of vaccination on domestic and international poultry markets including trade and market access considerations.”  It is evident that the broiler segment of the U.S. poultry industry through its lobbying and the influential Broiler Caucus has effectively prevented the application of vaccination to the detriment of the turkey and egg production segments irrespective of sentiments expressed by the NCC. 

 

 

Congressional Response to the Secretary of the Department of Health and Human Services

 

The poultry industry and human epidemiologists should be alarmed by the misinformed, and incendiary statements by Robert F. Kennedy, Jr. Secretary of the Department of Health and Human Services as reported in the New York Times on March 18th, relating to “letting avian flu run through flocks so we can identify the birds and preserve those that are immune to it.”  This appalling approach to end the bird flu epidemic is unworthy of even cursory consideration.

 

Five members of the House of Representatives addressed a letter to the Secretary on April 1st condemning his statement and demanding reports and copies of communications among the Department of Health and Human Services, the USDA, the Centers for Disease Control and Prevention and the National Institutes of Health regarding mitigation of avian influenza.

 

In the first instance it is noted that avian influenza will ultimately kill in excess of 98 percent of an infected flock.  During the clinical phase, vast quantities of virus are generated resulting in the potential for inter-farm spread especially where complexes are located in close proximity.  Even if a small proportion of a flock were to survive an outbreak of avian influenza their value for breeding would be negligible given that the commercial generation of broiler, turkey and egg-production flocks are hybrids. The program of “stamping-out” has in all probability reduced farm-to-farm spread notwithstanding the depopulation of 170 million commercial poultry since the onset of the 2022 epornitic.

 

To add insult to injury, the Secretary of Agriculture, Brooke Rollins apparently embraced the distorted logic expressed by Secretary Kennedy despite confusingly advancing a “four-pronged strategy” incorporating nothing new and funded by  a proposed $1 billion in an attempt to suppress HPAI.

 

The five members of the House, including Rep. Raja Krishnamoorthi (D-IL), Ranking Member of the Subcommittee on Healthcare and Financial Services and Rep. Gerald E. Connoly (D-VA), Ranking Member of the Committee on Oversight and Government Reform requested a list of non-governmental experts consulted by HHS relating to any federal response to avian influenza.  The Representatives also requested “a full and complete list of individuals who recommended that the federal government would allow avian flu to run through the flock in an effort to build immunity” together with their credentials and past involvement with the federal government.  The letter to Secretary Kennedy raised the justifiable issue of a potential zoonotic infection and stressed the need to “combat, contain and eliminate avian influenza, requiring a concerted and coordinated effort across all relevant federal agencies.”

 

Secretary Kennedy is devoid of scientific credentials. He has surrounded himself with sophists and charlatans expressing unconventional policies to prevent human infections. He has embraced conspiracy theories on disease and related topics that have been debunked by both U.S. and international scientist and agencies. As a Secretary of the HHS he is entitled to his personal opinions but not a selective or distorted expression of facts

 

Zoonotic Implications of HPAI

The zoonotic aspect of HPAI was reviewed in a published interview prepared by Dr. Eric Rubin Editor-in-Chief and Dr. Lindsey Baden, Deputy Editor of the New England Journal of Medicine who discussed infectivity of HPAI with virologist Dr. Yoshihiro Kawaoka.  Of concern is the circulation of H5N1 genotype D.11 and B3.13 in avian species and dairy herds respectively.  Although the incidence rate of bovine influenza H5N1 is declining more than 1,000 herds have been diagnosed with possibly many more infected. Both structural deficiencies and a lack of effective biosecurity within the U.S. dairy industry have contributed to dissemination of the virus.  It does not help that the Administration has terminated personnel involved in response to COVID and have effectively disbanded the group of scientists including epidemiologists, virologists and logisticians concerned with preparedness for a future pandemic.  Signing a Presidential Executive Order has transitory political effect but does not necessarily prevent the inevitable emergence of an infection with epidemic or pandemic potential at some time in the future.

 

Rubin, E. et al outbreak update-H5N1 New England Journal of Medicine 2025 doi.org/10.1056/nejme 2502267

 

 

 

Aerogenous Transmission of H5N1 Confirmed

 

EGG-NEWS has consistently maintained that highly pathogenic avian influenza (HPAI) can be transmitted by the aerogenous route either as a bioaerosol or entrained on excreta and dust to be moved by wind.  A comprehensive epidemiologic investigation involving field observations, meteorology and molecular studies confirmed the spread of an outbreak of H5N1 from a commercial duck farm to unrelated egg production farms over a distance of five miles.  The case report with appropriate documentation involved an outbreak in the Czech Republic.  The authors note that their findings “underscore the importance of considering windborne spread in future outbreak mitigation strategies.”  Anecdotal and experimental data confirm the possibility of airborne infection extending from waterfowl excreting virus.

 

The USDA-APHIS has long held that “biosecurity of an acceptable standard will provide protection against HPAI.”  This is a false presumption given the ability of the virus to be transmitted over relatively long distances by the aerogenous route.  As noted by the authors of the Czech paper, power-ventilated egg production housing is extremely vulnerable given the volume of air displaced by fans. Exhaust rates may range from 200,000 to 600,000 cfm per 100,000 hens depending on climatic conditions.  Among the many failures of USDA-APHIS to address appropriate preventive measures has been a neglect of field epidemiology.  The only conclusions that can be drawn from superficial telephone-administered surveys is that proximity to waterfowl preceding an outbreak was a significant risk factor.  This would indirectly correspond with the observations in this significant publication.

 

 

Nagy, A. et al bioRxiv doi.org/10.1101/2025.02.12.637829

 

Editorial Comment

 

The Economic Impact of HPAI

 

There is no purpose in tiptoeing around the failure to adopt vaccination against HPAI in high-risk areas.  The broiler industry may or may not lose a part of their market for leg quarters that represent over 97 percent of shipments of USDA-inspected broiler products valued at $4.5 billion in 2024.  Although this restraint is significant in terms of volume and monetary value, the ban on vaccination requires a broader perspective.  The USDA-APHIS has expended over $2 billion in indemnity payments and logistics from the Commodity Credit Corporation.  Individual egg producers have experienced disproportionately higher losses as a result of their inability to supply markets during the period required to repopulate their complexes.  Consumers have been forced to pay high prices for eggs, far exceeding the potential loss that may be experienced through export markets.  In 2022, the average price of eggs was conservatively $2 per dozen higher than it would have been in the absence of HPAI, costing consumers an incremental $15 billion on their grocery expenditures.  In 2024 the cost to consumers as a result of HPAI was infinitely higher given the differential between average shelf price and values that would otherwise have prevailed.  The loss of 30 million hens during the first two months of 2025 was reflected in an escalation in egg prices peaking at $8.58 per dozen at wholesale on February 28th but declining thereafter to $3.27 per dozen by the end of March. Notwithstanding this decline, the escalation in egg prices attained 60.4 percent in March 2025 compared to twelve months previously.  The disproportionate escalation in the price of eggs should be compared to an increase of 0.5 percent for food-at-home during March.  Within this category, dairy items increased by 2.2 percent, poultry meat by 0.9 percent, cereal and bakery products by 1.1 percent. Fruit and vegetables declined by 0.7 percent. and the fish and seafood category was down by 1.5 percent.

 

In reviewing the export market for broiler leg quarters, it is noted that volumes are declining but unit prices are moving in the opposite direction although with a net decline in total annual value.  The question arises as to whether importing nations would continue to purchase leg quarters if preventive vaccination were to be permitted for egg-production flocks in high-risk areas. Vaccination would be subject to appropriate monitoring and surveillance in accordance with World Organization of Animal Health (WOAH) or negotiated standards. It is envisaged that USDA-APHIS could certify that broiler flocks of origin contributing to exports were free of HPAI at the time of slaughter.  It is also important to note that many of the nations importing U.S. leg quarters do so on the basis of low cost with an average unit price of $1,424 prevailing over the first two months of 2025 covering 479,000 metric tons.  Many importing nations are endemic with respect to HPAI and in some cases deploy vaccines against the infection. This would facilitate exports in accordance with the rules of the WOAH. 

 

The USDA-APHIS has been stubbornly remiss in their failure to negotiate terms under which U.S. producers could justifiably export broiler leg quarters from non-infected flocks.  For more than three years the Agency has labored under the misplaced presumption that HPAI is exotic in the U.S. and that the disease could be eradicated following an anachronistic “stamping-out” program.  The fallacy in the APHIS playbook is the failure to accept that infection is disseminated by millions of wild bird reservoirs on a seasonal basis together with introduction by migratory marine birds cohabitating with waterfowl in the Canadian Maritime provinces and in Alaska with extension down into British Colombia.

 

For the edification of APHIS there is adequate anecdotal and scientific evidence of introduction of infection on to farms by the aerogenous route. This reality means that even the strictest biosecurity does not provide absolute protection against H5N1 and other highly pathogenic avian influenza viruses suggesting a phased shift in the approach to vaccination.

 

 

Reducing the Capacity of the U.S to Respond to Zoonotic HPAI

 

The ongoing mass dismissals in the U.S. Food and Drug Administration will have an adverse effect on testing consumer dairy products although it is generally accepted that pasteurization inactivates bovine influenza H5N1 strain B3-13 virus.  Similar reductions in staffing at the Centers for Disease Control and Prevention will compromise detection of possible zoonotic infection that appears to be increasing in complexity and significance.  Mass layoffs have affected 40 cooperating laboratories within the FDA Veterinary, Laboratory Investigation and Response Network and also the USDA National Animal Health Laboratory Network responsible for aspects of routine and diagnostic activities.  Critical reductions have occurred among the personnel of the National Animal Health Laboratory Network that coordinates activities between the USDA National Veterinary Services Laboratory and the approximately 60 state and university laboratories throughout the U.S. This commentator gives little credence to a USDA spokesperson that averred that job reduction “will not compromise the critical work of the department including its ongoing response to avian influenza.”

 

Stop Press: 60-Minutes Segment on HPAI

 

The 60-Minutes airing on April 20th focused on bovine influenza H5N1 with little coverage of HPAI in poultry other than the obvious impact on egg prices. The greatest deficiency was a lack of ‘assurance’ that avian influenza is not transmissible to consumers through eggs.  APHIS was disinclined either through governmental restraint or lack of photogenic administrators, from participation in the program.

 

The Bottom Line

 

It is hoped that well-intended Congressional action, comments by informed commentators and scientific publications will break the de facto veto exercised by the broiler sector over vaccination as a modality to suppress outbreaks of HPAI in turkey and egg-producing flocks. Further temporizing proposed in the form of additional “discussion” and “research” is disingenuous. Delay will be both costly and represent a risk of emergence of a potentially zoonotic strain. The Administration should sincerely work towards reducing the price of eggs over the long term, limit public sector expenditures on control and avoid even the smallest risk of a catastrophic pandemic. Those in authority in the  USDA and DHHS would be well advised to heed the advice of epidemiologists, avian health practitioners, the WOAH and informed observers regarding the efficacy and desirability of vaccination to establish immune populations with appropriate surveillance in high-risk areas.


 

Egg Industry News


Brought to you by Big Dutchman

This special edition of EGG-NEWS is sponsored by Big Dutchman and highlights their CompoTower manure composting system.

It is hoped that the statistical data relating to cage-free production and a summary of May production and cost data will be of value to subscribers


 

USDA Cage-Free Production Data for May 2025

This update of U.S cage-free production is sponsored by Big Dutchman USA for the benefit of producers in North America.

 

The USDA Cage-Free Report covering May 2025, was released on June 2nd 2025.

 

The report documented the complement of hens producing under the Certified Organic Program to be 19.8 million (rounded to 0.1 million), down 0.6 million or 2.9 percent from April 2025. The number of hens classified as cage-free (but excluding Certified Organic) and comprising aviary, barn and other systems of housing apparently increased by 4.0 million hens or 3.8 percent from April 2025 to 109.3 million (effectively over two months) despite depopulation of a two large Arizona complexes under common ownership.

 

Depopulation was carried out as a result of HPAI through the fourth quarter of 2024 and continuing in January and February 2025 (31 million), but with lower intensity in March (0.2 million), April (1.0 million) and May (3.8 million).

 

Average weekly production for Certified Organic eggs in May 2025 was down 3.2 percent compared to April 2025 with a questionably high average weekly production of 84.2 percent. Average weekly flock production for cage-free flocks other than Certified Organic was up 3.4 percent in May 2025, and with a high average hen-month production of 82.6 percent.  Seasonally placed younger flocks in anticipation of periods of peak demand increase the availability of cage-free and organic eggs in response to pullet chick placements 20 weeks previously.

 

There is no adequate explanation for the high production rate especially if the reported number of hens is lower than actual, and in view of a possible undercount following HPAI flock depopulation.

 

According to the USDA Egg Markets Overview and data from the weekly USDA Shell Egg Demand Indicator for May 30th the categorization of U.S. flocks according to housing system among the total of 287.0 million producing hens on May 1st comprised:-

 

Caged, 158.8 million (55.1% of total flock);

Cage Free, 109.3 million (38.0%) with 87% of this population in barns and 6.5% each on free-range and pasture;

Organic, 19.8 million (6.9%) with 60.6% of this population in barns and 22.7% on free-range and 16.7 on pasture: or other extensive systems

 

Losses attributed to HPAI in 2025 to date comprised:-

        Caged flocks, 20.2 million representing 7.0 percent of a nominal 287 million hens    

        Cage-free flocks, 14.8 million representing 5.2 percent

        Organic flocks, negligible, >0.1 percent

Average Flock Size

(million hens)

 Average

   May      2025

Average

Q1-2025

Average

Q4- 2024

Average

Q3 –

2024

Average

Q2 –

2024

Average

Q1-

2024

Certified Organic

   19.8

   20.4

20.5

 20.0

18.8

18.3

Cage-Free Hens

    109.3

   103.4

  104.5

  103.9

 101.0

 105.7

Total Non-Caged

    129.1

   123.8

  125.0

  123.9

 119.8

 124.0

 

Average Weekly Production (cases of 360 eggs)

     April

      2025                   

          May

          2025

Certified Organic @ 83.9% hen/day

    334,431

   323,520       -3.2%

Cage-Free @ 82.6% hen/day

 1,698,059

1,756,075      +3.4%

Total Non-Caged @ 82.8% hen/day

 2,032,085

2,079,595      +2.3%   

        

 

On June 2nd USDA recorded the following National inventory levels expressed in 30-dozen cases (rounded) with the weekly change as a percentage of the total quantity of eggs:-

Commodity shell eggs of all sizes.              1,345,000.  (+1.3%)

Commodity breaking stock.                            331,100. (+4.0%)

Specialty eggs.                                                  36,400.  (-8.7%)

Certified organic eggs.                                      93,900. (+8.7%)

Cage Free eggs                                                415,000. (+6.1%)                        

 

 

Average Nest Run Contract Price Cage-Free

 White and Brown combined

$1.73/doz.   ($1.70/doz. from July 2024

May 2025 Range:

$1.55 to $2.10/doz.

FOB Negotiated May price, grade-ready quality, loose nest-run. Price range $2.00 to $4.80 per dozen

Average May 2025 Value of $3.53/doz.   ($4.48/doz. April 2025)     

 

Average May 2025 advertised promotional National Retail Price   C-F, Large White*

$3.87/doz. May 2025 (4 regions only)

(White was $7.99/doz. in April 2025)

USDA Based on 4 Regions, 764 stores

NW, SW MW & SC.

Range $3.31/doz. (SC) to $4.12/doz. (SW)

*April report listed only White. March report only Brown

 

Negotiated nest-run grade-ready cage-free price for May 2025 averaged $3.53 per dozen, down $0.95 per dozen (21.2 percent) from $4.48 per dozen in April 2025, reflecting an imbalance between demand and supply.

 

The May 2025 advertised U.S. featured retail price for Large White cage-free eggs over 674 stores in only four regions (NW, SW, MW and SC.) was $3.87 per dozen. This compares with 62 stores featuring cage-free Large White in April and reflects more promotions as the year has progressed, consistent with the lower incidence rate of HPAI during March and April but followed by an upsurge in May.

 

The recorded average wholesale price of $3.53 per dozen plus a provision of $0.60 cents per dozen for packaging, packing and transport, resulted in a theoretical price of $4.13 per dozen delivered to CDs. The average four-region advertised promotional retail price of $3.87 per dozen corresponds to a theoretical average negative retail margin of -6.8 percent (+57.2 percent last month for Large C-F white) but with more promotions offered by a larger number of stores featuring cage-free eggs. Margins are presumed higher for non-featured eggs including pastured and other specialty eggs at shelf prices attaining in excess of $9.00 per dozen in high-end supermarket chains. Retailers maximizing margins especially on Certified Organic, free-range and pastured categories restrict the volume of sales, ultimately disadvantageous to producers.


 

Big Dutchman Introduces CompoTower Manure Composting System

Disposal of Layer Manure

 

Big Dutchman has acquired considerable expertise in the design and operation of composting systems capable of processing poultry manure. Installations are capable of reducing the moisture content of waste containing 65 percent water from high-rise houses or from belt and aviary systems with 45 percent moisture. The Big Dutchman CompoTower applies microbial degradation to convert layer manure into a valuable pathogen-free, organic product marketed as an acceptable high-value fertilizer for domestic and institutional applications.

 

Direct spreading of raw manure onto farmland will be subject to increasing restrictions as the nitrogen component percolates through the soil and contaminates groundwater and wells. Runoff entering streams and waterways from concentrated animal feeding operations (CAFOs) is subject to increased scrutiny from both state and federal regulators, irrespective of ongoing relaxation of environmental regulations. Future environmental restraints may require on-farm or remote processing of manure before field application.

 

The CompoTower system reduces odor and eliminates complaints and lawsuits. With belt manure housing, fly populations are effectively eliminated, reducing expenditure on insecticides.

 

Operation of the CompoTower

The Big Dutchman CompoTower is available in a range of capacities, handling the output from farms housing 5,000 to 250,000 hens. For a modern U.S. in-line aviary complex with one million hens, four units can be clustered to maintain continuous processing of approximately 100 tons of manure daily. The processing cycle ranges from 5 to 15 days, depending on moisture content. Complete composting of waste from a belt-collection aviary system averages 10 days. The microflora of the tank functions in an anaerobic environment with sequential daily filling. The corresponding off-take of sterile, organic nutrient-rich product with a moisture content of 15 percent is gathered daily.

 

 

Each CompoTower can receive raw manure using a skid steer loader to transfer material from a storage area to a loading bucket in one-ton or larger increments, depending on the model. Manure is elevated to the input hopper on top of the tower. Designated quantities of manure appropriate to the capacity of the CompoTower are added to the insulated reaction vessel to undergo composting. Mixing blades with perforated holes agitate the product continually during composting. The insulated vessel is equipped with power ventilation, and the composting process is controlled by integrated circuitry located in a control panel. The screen provides appropriate readouts of temperature and other operational details. The composting process is continuously monitored with automated responses to ensure optimal function, eliminating the need for observation or intervention. CompoTower installations require 380-volt three-phase connections.

 

Application of CompoTower Installations

The CompoTower was designed by Big Dutchman’s agricultural engineers for ease of shipping. Assembly on-site is expedited by modular and bolt-together features. As with all Big Dutchman products, durability is ensured by incorporating stainless steel components that contribute to a long service life.

 

For farms of small capacity, the CompoTower is self-contained with respect to loading manure and the discharge of the composted product. For large in-line U.S. complexes, clusters of more than one CompoTower can be erected. These units will require elevators and conveyors that are designed and installed in accordance with the farm layout, including the number, size, and configuration of houses and the location of the central manure storage facility. Given the volume of product from large complexes, pelleting and bagging equipment is recommended to facilitate dust-free handling, marketing, and transport.

 

Big Dutchman has installed CompoTower units in the E.U. and Asian nations to comply with environmental regulations and is providing farmers with an additional cash stream from composted product.

 

 

Big Dutchman Air Scrubber

In areas with rigorous restrictions on the emission of compounds, including ammonia and greenhouse gases, Big Dutchman can supply a two-stage Air Scrubber. Each unit is designed to moderate the emissions of two CompoTowers. The Air Scrubber achieves a high separation rate, removing 99% of ammonia and 90% of dust.

 

Exhaust air is drawn from the CompoTower into the Scrubber and is filtered. Water is sprayed over the filter to separate dust. Water containing sulfuric acid is passed over the filter package to inactivate ammonia and other compounds. Water is recirculated, and the level of acidity and nitrogen is automatically monitored and adjusted. The Scrubber ensures that only clean, dry air is released from the CompoTower manure processing system.

 

 

Additional Information

Big Dutchman sales personnel and authorized agents can prepare feasibility studies to calculate the return on investment and payback from CompoTower installations. Actual return will depend on specific details relating to an operation, including the prevailing interest rate, depreciation provision, cost of power, and value of product.

For further information, access the Big Dutchman website www.bigdutchman.com.


 

Updated June 2025 USDA Projection for U.S. Egg Production and Consumption.

On June 18th 2025 the USDA Economic Research Service (ERS) issued actual values for egg production during 2024 with an updated projection for 2025 and a forecast for 2026. Production, consumption and prices were revised from the previous April 16th 2024 report.

 

Projected egg production for 2025 was adjusted downward from 7,737 million dozen in 2024 by 4.7 percent to 7,372 million dozen due to progressive depletion of hen flocks as a result of HPAI through Q1 2025 with incident cases occurring in April and May totaling 36.4 million hens year-to-date. The per capita consumption of shell eggs and liquids combined for 2025 will be 260.3 eggs, down 10.3 egg equivalents (-3.8 percent) from 2024. The projected average 2025 benchmark New York bulk unit price was raised 102 cents to 405 cents per dozen. Subsequent USDA projections will provide greater clarity on the recovery in consumption in an economy that is undergoing deflation in all food categories with the outstanding exception of eggs.

 

Restoration in flock size after HPAI depletions in 2022 progressed at a net rate of approximately 1.0 million per week. Placements were limited by the availability of pullet chicks and for some producers by the rate of conversion to alternative housing systems. Restoration of the national flock was compromised by a resurgence of HPAI with 40.0 million layers depleted during 2024 but with replacement averaging 24 million pullets per month. On January1st the total egg-producing flock was estimated by USDA to be 304 million hens, 22 million or 6.8 percent below the nominal producing flock averaging 326 million hens over 2021 before the onset of the ongoing 2022 HPAI epornitic. As of June 18th the national flock attained 286.8 million, approximately 39 million (-11.9 percent) below the pre-HPAI level. Unpredictable factors affecting flock size and hence price will include consumer demand influenced by recently lower shelf prices and the extent of anticipated losses during the late fall through early winter of this year.

Exports of eggs and products at approximately 2.0 percent of total production over the first quarter of 2025 did not materially affect the domestic price. Future export volume will be constrained by high domestic prices, international competition and disease-related embargos.

 

The USDA forecast for 2026 includes production of 7,875 million dozen, up an optimistic 6.8 percent from 2025. Projected consumption will be 274.4 eggs per capita. This forecast presumes substantial control of HPAI and an adequate supply of replacement chicks and pullets. These are both speculative assumptions in the absence of approved vaccination in high-risk areas. The increase, if it were to become reality would depress the NY Large benchmark price to an average of $2.16 per dozen compared to the 2025 value of $4.05 per dozen, corresponding to a loss situation.

 

 

 

Updated June 2024 USDA data is shown in the table below:-

 

 

Parameter

2022*

(actual)

2023

(actual)

 

2024*

(actual)

 

2025*

(projection)

% Difference

2024-2025

 

2026

(forecast)

 

 

 

 

 

 

 

 

Production (million dozen)

7,825

7,864

7,737

7,372

    -4.7

 

7,875

Consumption (eggs per capita)

 280.5

 279.3

 270.6

      260.3

    -3.8

 

274.4

New York price (c/doz.)

282

   192

  303

      405

 +33.7

  

216

 

*Data influenced by HPAI losses.

 

Sources:  1. Livestock, Dairy and Poultry Outlook released June 18th 2025

 


 

REVIEW OF MAY 2025 EGG PRODUCTION COSTS AND STATISTICS

This update of U.S egg-production statistics, costs and prices is sponsored by Big Dutchman USA for the information of producers and stakeholders

 

MAY HIGHLIGHTS

  • May 2025 USDA ex-farm blended USDA nest-run, benchmark price for conventional eggs from caged hens was 304 cents per dozen, down 13 cents per dozen or 4.1 percent from the April 2025 value of 317 cents per dozen. The corresponding May 2023 and 2024 values were respectively $1.35 and $1.90 cents per dozen. For annual comparison, average monthly USDA benchmark price over 2023 was 57.0 cents per dozen and 135 cents per dozen for 2024. Stock levels and prices prior to the onset of flock depletions due to HPAI indicated a relative seasonal balance between supply and demand. Future nest-run and wholesale prices will be largely dependent on consumer demand for shell eggs and products, net imports and the rate of replacement of pullets and hens depleted due to HPAI. Other considerations include diversion to shell sales from the egg-breaking sector in an interconnected industry. Imports have declined sharply during the current quarter.
  • May 2025 USDA ex-farm negotiated USDA nest-run, benchmark price for all categories of cage-free eggs was 353 cents per dozen, down 95 cents per dozen or 21.2 percent from the April 2025 value of 448 cents per dozen. The corresponding May 2023 and 2024 values were respectively 97 and 198 cents per dozen.
  • Fluctuation in wholesale price is attributed in part to the amplification of upward and downward swings associated with the commercial benchmark price-discovery system in use. An additional factor influencing pricing is the proportion of shell eggs supplied under cost-plus contracts accentuating the upward and downward price trajectory of uncommitted eggs as determined by the price discovery system. Highly pathogenic avian influenza was the major driver of price in 2024 and through Q1 of 2025 due to the high incidence rate. Approximately 40 million hens and at least 2.0 million pullets were depleted in 2024 with close to an additional 36 million birds, (hens and pullets) in 35 complexes or farms through mid-May 2025.
  • May 2025 USDA average nest-run production cost for conventional eggs from caged flocks over four regions (excluding SW and West), applying updated inputs was 74.6 cents per dozen, down 0.8 cents from April 2025 at 75.4 cents per dozen. The May average nest run production cost for other than caged hens was estimated by the EIC to be 93.6 cents per dozen down 1.0 cent per dozen from April. Approximately 60 cents per dozen should be added to the USDA benchmark nest-run costs to cover processing, packing material and transport to establish a realistic cost value as delivered to warehouses.
  • May 2025 USDA benchmark nest-run margin for conventional eggs attained a positive value of 229.4 cents per dozen compared to a positive margin of 241.6 cents per dozen in April 2025. Year to date the average monthly nest-run production margin has attained 408 cents per dozen. Average nest-run monthly margin for 2024 was 170.8 cents per dozen compared to 64.2 cents per dozen over 2023 and 155 cents in 2022.
  • May 2025 USDA benchmark nest-run margin for all categories of cage-free eggs attained a positive value of 259.4 cents per dozen compared to a positive margin of 353.4 cents per dozen in April 2025. Year to date the average monthly nest-run production margin has attained 518 cents per dozen. Average nest-run monthly margin over 2024 was 440 cents per dozen compared with 100 cents per dozen in 2023, relatively unaffected by HPAI compared to the preceding and following years.
  • The April 2025 national flock (over 30,000 hens per farm) was stated by the USDA to be up by 0.7 million hens (rounded, and a probable undercount) to 287.2 million compared to 326 million before the advent of HPAI in 2022. Approximately 3.5 million hens returned to production from molt in May together with projected maturation of 23 million pullets, with the total offset by depletion of an unknown number of spent hens.
  • April 2025 pullet chick hatch of 30.1 million was down 0.3 million (-1.0 percent) from March 2025 despite increased industry need to replace depopulated flocks.
  • April 2025 exports of shell eggs and products combined were down 30.6 percent from March 2025 to 285,000 case equivalents representing the theoretical production of 4.2 million hens. Shell egg exports totaling 181,000 cases were dominated by Canada (85 percent of volume) and the “Rest of Americas” nations including the Caribbean (13 percent). With respect to 104,000 case equivalents of egg products, Canada (26 percent of volume), Japan, (10 percent), “Rest of Americas” (37 percent) and Mexico, (6 percent) collectively represented 79 percent of shipments. Volumes exported are based on the needs of importers, competition, availability in the U.S. and FOB prices offered.          
  • According to the USDA Egg Market Overview released on June 6th, all egg imports (shell, liquid and dry) in May attained 15.2 million dozen shell equivalents compared to exports of all categories of 8.5 million dozen.

 

(insert US map showing regions)

 

TABLES SHOWING KEY PARAMETERS FOR MAY 2025.

 

Summary tables for the latest USDA May 2025 flock statistics, costs and unit prices were made available by the EIC on June 17th 2025. Data is arranged, summarized, tabulated and compared with values from the previous May 15th 2025 release reflecting April 2025 costs and production data, as revised and applicable. Monthly comparisons of production data and costs are based on revised USDA values.

 

VOLUMES OF PRODUCTION REFLECTING THE ENTIRE INDUSTRY                                                                                   

PARAMETER

        MAY 2025

     APRIL 2025

Table-strain eggs in incubators

59.5 million      (May)

 61.9* million   (Apr.)

Pullet chicks hatched

30.1 million      (Apr.)

 30.4* million   (Mar.)

Pullets to be housed 5 months after hatch

27.1 million      (Sep.)

 27.1* million   (Aug.)

EIC 2025 December 1st U.S. total flock projection

314.2 million    (May)

315.0 million    (Apr.)

National Flock in farms over 30,000 

271.5* million  (Apr.)

270.8 million    (Mar.)

National egg-producing flock 

287.2 million    (Apr.)

286.5million     (Mar.)

Cage-free flock excluding organic

Cage-free organic flock

109.3  million   (May.)

  19.8  million    (May)

105.2 million     (Apr.)

  20.4 million     (Apr.)

Proportion of flocks in molt or post-molt

     12.8%            (May)

   12.5*%            (Apr.)

Total of hens in National flock, 1st cycle (estimate)

 250.4 million    (Apr.)

 250.7 million    (Mar.)

*USDA Revised


 

Total U.S. Eggs produced (billion)

   7.09 APRIL 2025

  7.34* MARCH 2025

Total Cage-Free hens in production

 Proportion of organic population

  129.1million   (May)

   15.3%  Organic

125.7 million   (April)

 16.2% Organic

“Top-5” States hen population (USDA)1

   130.5 million  (Apr.)

  129.8 million (Mar.)

  • Revised USDA/EIC Note 1. Texas excluded to maintain confidentiality  

 

PROPORTION OF U.S. TOTAL HENS BY STATE, 2025                                                                   

Based on a nominal denominator of 280 million hens in flocks over 30,000 covering 95 percent of the U.S complement.

USDA has amended inclusion of specific states in regions and eliminated Texas data to protect confidentiality of Company flock

Sizes

 

STATE

     APRIL1

      2025

     MARCH

       2025

 Iowa

    15.3%

      15.1%

Indiana

    11.5%

      11.6%

Ohio

    11.8%

      12.0%

Pennsylvania

      8.1%

        8.0%

Texas (estimate)

      7.5% ?

        7.5%?

California

      1.4%

        1.2%

  1. Values rounded to 0.1% 

                       

 

Rate of Lay, weighted hen-month (USDA)   82.2% MAY 2025.    82.3*% APRIL 2025

*Revised USDA

 

Revised per capita

Egg consumption 2020

285.6 (down 7.8 eggs from 2019)

Revised per capita

Egg consumption 2021

282.5 (down 3.1 eggs from 2020)

Actual per capita

Egg consumption 2022

280.5 (down 2.0 eggs from 2021 due to HPAI)

Actual per capita

Egg consumption 2023

278.0 (down 2.5 eggs from 2022)

Projected per capita

Forecast per capita

Egg consumption 2024

Egg consumption 2025

270.6 (down 7.2 eggs from 2023) attributed to HPAI losses*

 

264.1 (down 6.5 eggs from 2024) forecast regarded as aspirational, was 264.9 last month

 

*Revised, using data from USDA Livestock, Dairy and Poultry Outlook May 16th 2025 taking into account demand from the food service sector and presumably including the effect of HPAI depopulation.

EGG INVENTORIES AT BEGINNING OF MAY 2025:

Shell Eggs

1.49 million cases down 7.6 percent from April 2025

Frozen Egg

Products

 

364,301 case equivalents, down 1.3 percent from April 2025

Dried Egg

Products

Not disclosed since March 2020 following market disruption due

To COVID.  Moderate levels of inventory are assumed.

 

EGGS BROKEN UNDER FSIS INSPECTION (MILLION CASES)                                                                                   APRIL 2025, 6.44     MARCH   2025,  6.50*     

 

Cumulative eggs broken under FSIS inspection 2024 (million cases)

  77.2

JAN. TO DEC.

Cumulative 2024: number of cases produced (million)

257.9

JAN. TO DEC.

Cumulative 2024: proportion of total eggs broken

29.9%

(30.8% 2022)

 

 

 

Cumulative eggs broken under FSIS inspection 2025 (million cases)

  25.1

JAN.-APR.

Cumulative 2025: number of cases produced (million)

  79.7

JAN.-APR.

Cumulative 2025: proportion of total eggs broken

31.5%

JAN.-APR.

 

EXPORTS APRIL 2025: (Expressed as shell-equivalent cases of 360 eggs).

 

Parameter

Quantity Exported

Exports:

         2025

Shell Eggs (thousand cases)

MAR.  212.  APR.  181

Products (thousand case equivalents)

 MAR. 200.  APR.  104

TOTAL (thousand case equivalents)*

 MAR. 412.  APR.  285


                                                                                                                               

*Representing 1.5 percent of National production in APRIL 2025 (0.9% shell, 0.5% products).                    

COSTS AND UNIT REVENUE VALUES1 FOR CONVENTIONAL EGGS FROM CAGED HENS

 

Parameter

      MAY 2025

   APRIL 2025

4-Region Cost of Production ex farm (1st Cycle)1

74.6 c/doz

75.4 c/doz

Low

72.4c/doz      (MW)

73.3 c/doz  (MW)

High

76.6 c/doz     (NE)

77.1c/doz   (SE)

Notes:   1. Excludes SW and West 

       

Components of Production cost per dozen:-

 

 

     MAY 2025

   APRIL 2025

Feed

    34.9 c/doz

     35.5c/doz

Pullet depreciation

    11.8 c/doz

     11.9c/doz

Labor (estimate) plus

 

 

Housing (estimate) plus

     27.9c/doz

     27.9c/doz

Miscellaneous and other (adjusted May 2023)

 

 

 

 

 

 

 

 

 

 

 

 

Ex Farm Margin (rounded to nearest cent) according to USDA values reflecting MAY 2025:-

                                                        304.0 cents per dozen1- 74.6 cents per dozen = 229.4 cents per dozen         (April 2025 comparison:            317.0 cents per dozen – 75.4 cents per dozen  = 241.6 cents per dozen.

Note 1:  USDA Blended nest-run egg price

          

 

 

 

        MAY 2025

       APRIL 2025

USDA

Ex-farm Price (Large, White)

     304.0 c/doz    (May)

   317.0c/doz        (April)

 

Warehouse/Dist. Center

     345.2 c/doz    (May)

   372.0c/doz        (April)

 

Store delivered (estimate)

     351.2 c/doz    (May)

   378.0 c/doz       (April)

 

Dept. Commerce Retail1  National

     455.0 c/doz    (Apr.)

       

   512.0* c/doz     (Mar.)

    

 

Dept. Commerce Retail1  Midwest

     495.0 c/doz    (Apr.)

   547.0* c/doz     (Mar.)

 

 

 

 

 

 

 

 

 

1. Unrealistic USDA values based on advertised promotional prices with few participating stores, non-representative of shelf prices!

 


 

 

 

   MAY 2025

APRIL  2025

U.S. Av Feed Cost per ton

       $224.61

    $229.63

Low Cost – Midwest

       $203.69

    $208.47

High Cost – West

       $259.22

    $267.95

Differential 

       $  56.08

    $  59.48

 

Pullet Cost 19 Weeks

$4.60  MAY 2025

$4.63  APRIL 2025

Pullet Cost 16 Weeks

$4.05  MAY 2025

$4.08  APRIL 2025 

 

AVERAGE COSTS AND UNIT REVENUE FOR EGGS FROM CAGE-FREE HENS

 

Parameter

      MAY 2025

     APRIL 2025

5-Region Cost of Production ex farm (1st Cycle)

      93.6 c/doz

     94.6  c/doz

Low

      89.4c/doz  (MW)

       90.4   c/doz  (MW)

High

    100.7 c/doz (West)

   102.3   c/doz  (West)

 

 

Components of Production cost for cage-free eggs, per dozen:-

 

 

   MAY 2025

     APRIL 2025

Feed

    40.2 c/doz

   41.1 c/doz

Pullet depreciation

    15.6 c/doz

   15.7 c/doz

Labor (estimate) plus

 

 

Housing (estimate) plus

    37.8c/doz

    37.8 c/doz

Miscellaneous and other

 

 

 

 

 

 

 

 

 

 

 

 

Ex Farm Margin (rounded to cent) according to USDA values reflecting negotiated price for MAY 2025:-

Cage-Free brown     353.0 cents per dozen1- 93.6 cents per dozen =  259.4 cents per dozen

April 2025:-               448.0 cents per dozen -  94.6 cents per dozen =  353.4 cents per dozen  

 

 

 

 

       MAY 2025

     APRIL 2025

USDA

USDA Average Ex-farm Price1

     173 c/doz    (May)

  170 c/doz  (April)

 

Warehouse/Dist. Center2

     353 c/doz    (May)

  448 c/doz  (April)

 

Store delivered (estimate)

     359 c/doz    (May)

  456 c/doz  (April)

 

Dept. Com. Retail3  C-F White

Dept. Com. Retail3  C-F Brown

 

     387 c/doz    (May)

       Not disclosed (May)

  799  c/doz (April)

 Not disclosed (April)

 

 

Dept. Com. Retail3  Organic  

Dept. Com. Retail3  Pasture

      570 c/doz   (May)

      716 c/doz   (May)

 

  649 c/doz  (April)

  682 c/doz  (April)


1.       Contract price, nest-run loose. Range 155 to 210 c/doz. Little change since July 2024 and totally unrealistic.

  1. Negotiated price, loose. Range $2.00 to $4.80 per dozen
  2. Unrealistic USDA values based on promotional prices with few participating stores and non-representative of shelf prices

 

(Insert Fig 12  Quarterly CF and organic)

 

 

 

 

Cage-Free* Pullet Cost 19 Weeks

$5.57 MAY 2025

$5.61  APRIL 2025

Cage-Free* Pullet Cost 16 Weeks

$4.87 MAY 2025 

$4.90  APRIL 2025

* Conventional (non-organic) feed

Feed prices used are the average national and regional values for caged flocks. Excludes organic feeds with prices substantially higher than conventional.


 

USDA-WASDE REPORT #661, June 12th 2025

OVERVIEW

The USDA provided updated projections for the production of corn and soybeans in the June12th World Agriculture Supply and Demand Estimates (WASDE) #661, reflecting the 2025 crop. Production values for corn and soybeans were understandably unchanged from the May edition. Projections of crop size and ending stocks are derived from acreage to be planted, recent annual crop yields and with the latest assumptions relating to domestic use and tariff policy influencing exports.

 

The June 12th WASDE report confirmed that the 2025 corn crop will be harvested from an expanded 87.4 million acres, (82.7 million acres in 2024). The soybean crop will be harvested from a reduced 82.7 million acres, (86.3 million acres in 2024).

 

The June 12th WASDE yield value for the 2025 corn crop was predicted at 181.0 bushels per acre. By comparison yield was 183.1 bushels per acre in 2024. The projected value for soybean yield was an optimistic 52.5 bushels per acre compared to 51.7 bushels per acre for the previous crop.

 

The June 12th USDA projection for the ending stock of corn was reduced 2.8 percent to 1,750 million bushels due to a corresponding reduction in beginning stock. The June USDA projection for the ending stock of soybeans was unchanged at 295 million bushels.

 

The June 12th 2024 WASDE projected the corn price for the 2025-2026 market year at an average of 420 cents per bushel. The projected average season price for soybeans was 1,025 cents per bushel. The price of soybean meal was unchanged at $310 per ton. USDA commodity prices suggest stable to lower feed costs for livestock and poultry producers. Row crop farmers will experience declining margins. In some areas corn will be below break-even given relative production costs and per bushel prices. It is probable that high support prices will be required from Commodity Credit Corporation funding if importing nations respond negatively to protective and punitive tariffs imposed by the Administration.

 

Projections for world output included in the June 2025 WASDE report, reflect the most recent estimates for the production and export of commodities especially in the Southern Hemisphere with an emphasis on Argentine and Brazil. Economists also evaluated the likely impacts from the ongoing La Nina event especially on South America.

 

It is accepted that USDA projections for export will be influenced by the fluid situation relating to tariffs. Exports are also based on the perceived intentions and needs of China. This Nation has sharply curtailed purchases of commodities and especially U.S. soybeans during the previous and current market years.

 

CORN

Production parameters for corn were unchanged from the June Report. Influenced by harvest data for the 2024 crop and the March 31st Prospective Plantings Report, the June WASDE Report projected a 2025 crop of 15,820 million bushels, compared to 15,413 million bushels for the previous 2024 record harvest. The “Feed and Residual” category was retained at 5,900 million bushels. As of 9th June, 97 percent of the corn crop had been planted with 87 percent emerged. The Food and Seed category was held at 1,385 million bushels. The Ethanol and Byproducts Category was unchanged at 5,500 million bushels consistent with estimated demand for E-10 and higher blends and onset of summer driving. Projected corn exports were predicted to attain 2,675 million bushels, based on recent orders and shipments. The anticipated ending stock of corn will be 1,750 million bushels or 10.2 percent of projected availability.

 

The forecast USDA average season farm price for corn in the June WASDE report covering the 2025 crop was 420 cents per bushel. At 16H00 EDT on June 12th after the noon release of the WASDE, the CME spot price for corn was 439 cents per bushel, 4.5 percent above the USDA June projection.

 

JUNE 2025 WASDE #661 Projections for the 2025 Corn Harvest:

 

Harvest Area

87.4 m acres

(95.3 m. acres planted), harvest corresponding to 91.7% of acres planted)

 

Yield

181.0 bushels per acre

(Updated from 179.3 bushels per acre in the February WASDE reflecting the 2024 crop)

 

Beginning Stocks

 

  1,365 m. bushels

 

 

Production

 

15,820 m. bushels

 

 

Imports

 

       25 m. bushels

 

 

Total Supply

 

17,210 m. bushels

Proportion of Supply

 

Feed & Residual

 

  5,900 m. bushels

 

34.3%

 

Food & Seed

 

  1,385 m bushels

 

 8.0%

 

Ethanol & Byproducts

 

  5,500 m. bushels

 

32.0%

 

Domestic Use

 

12,785m. bushels

 

74.3%

 

Exports

 

  2,675 m. bushels

 

15.5%

 

Ending Stocks

 

  1,750 m. bushels

                               

                                10.2%

 

Average Farm Price: 420 cents per bushel. (Unchanged from May)

 

SOYBEANS

 

Production parameters for soybeans were unchanged from the June Report. Influenced by harvest data for the 2024 corn crop and an estimated yield of 52.5 bushels per acre albeit with reduced acreage planted, the June WASDE Report projected the soybean harvest to be 4,340 million bushels. As of 9th June, 90 percent of the soybean crop had been planted with 75 percent emerged. Crush volume was projected at 2,490 million bushels despite increased industry capacity. Projected exports were predicted to be 1,815 million bushels notwithstanding the prospect of reduced imports by China following uncertainty over tariffs. Ending stocks were anticipated to be 295 million bushels, down 22.3 percent from the December WASDE report reflecting the 2024-2025 season. Prior to 2018, China, the largest trading partner for U.S. agricultural commodities, imported the equivalent of 25 percent of U.S. soybeans harvested.

 

The USDA WASDE June projection for the ex-farm price for soybeans for the 2025 harvest was 1,025 cents per bushel. At 16H00 EDT on June 12th following release of the WASDE, the CME spot price was 1,042 cents per bushel, 1.6 percent above the June USDA projection.

 

JUNE 2025 WASDE #661 Projection for the 2025 Soybean Harvest:-

 

Harvest Area

82.7 m acres

83.5 m. acres planted. Harvest corresponding to 99.0% of planted acreage)

 

Yield

52.5 bushels per acre

(Up from 51.7 bushel/acre attained in 2024)

 

Beginning Stocks

 

    350 m. bushels

 

 

Production

 

  4,340 m. bushels

 

 

Imports

 

       20 m. bushels

 

 

Total Supply

 

  4,710 m. bushels

Proportion of Supply

 

Crush Volume

 

  2,490 m. bushels

 

52.9%

 

Exports

 

  1,815 m. bushels

 

38.5%

 

Seed

 

       73 m. bushels

 

 1.5%

 

Residual

 

        37 m. bushels

 

 0.8%

 

Total Use

 

  4,415 m. bushels

 

93.7%

 

Ending Stocks

 

     295 m. bushels

                                

                                  6.3%

 

Average Farm Price: 1,025 cents per bushel (Unchanged from May)

 

SOYBEAN MEAL

 

Production parameters for soybean meal were unchanged from the June Report. The projected production of soybean meal from the 2025 soybean crop will be 58.7 million tons, consistent with the soybean crush volume of 2,490 million bushels. Projected production reflects the stagnant demand for biodiesel despite expanded U.S. crushing capacity. According to NOPA crush volumes in March and April were respectively 194.5 and 190.2 million bushels. Crush volume is driven both by exports and domestic consumption for livestock feed and for soy oil supplying the food and biodiesel segments. The projection of domestic use was 41,325 million tons. Exports were estimated at 18.0 million tons.

 

The USDA projected the ex-plant price of soybean meal at $310 is unchanged since the February WASDE as an average for the season based on supply and demand considerations. USDA predicted an ending stock of 475,000 tons representing 0.8 percent of supply.

 

At 16H00 EDT on June 12th the CME spot price for soybean meal was $295 per ton, down 5.1 percent compared to the May WASDE projection of $310 per ton.

 

 JUNE 2025 WASDE #661 Projection of Soybean Meal Production and Use

Beginning Stocks

     450

Production

58,700

Imports

     650

Total Supply

59,800

Domestic Use

41,325

Exports

18,000

Total Use

59,325

Ending Stocks

     475

(Quantities in thousand short tons)

Average Price ex plant:  $310 per ton (Unchanged from May)

 

IMPLICATIONS FOR PRODUCTION COST

 

The price projections based on CME quotations for corn and soybeans suggest lower feed production costs for broilers and eggs.  Going forward, prices of commodities will be determined by World supply and demand and U.S. domestic yield, use and exports.

 

For each 10 cents per bushel change in corn:-

  • The cost of egg production would change by 0.45 cent per dozen
  • The cost of broiler production would change by 0.25 cent per live pound

   

For each $10 per ton change in the cost of soybean meal:-

  • The cost of egg production would change by 0.35 cent per doze
  • The cost of broiler production would change by 0.30 cent per live pound.

 

WORLD SITUATION

 

With respect to world coarse grains and oilseeds the June 2025 WASDE Report included the following appraisals by USDA:-

 

COARSE GRAINS:

“Global coarse grain production for 2025/26 is forecast 1.2 million tons higher to 1.551 billion. This month’s foreign coarse grain outlook is for larger production and trade, and smaller ending stocks relative to last month. Foreign corn production is higher with an increase for India. Foreign barley production is up slightly, reflecting increases for the EU and Argentina that are partly offset by a decline for Syria”.

 

“Major global trade changes for 2025/26 include larger barley exports for Argentina. For 2024/25, corn exports are lowered for Argentina but raised for the United States and Canada. Corn imports are lowered for China and Canada with increases for Turkey, Indonesia, and Iraq. Foreign corn ending stocks for 2025/26 are reduced, with cuts to China, South Africa, India, and Canada partially offset by an increase for Argentina.

 

OILSEEDS:

“Global soybean supply and demand forecasts for 2025/26 include higher beginning stocks, unchanged production, slightly higher crush, and higher ending stocks. Beginning stocks are raised on a one-million-ton reduction to crush for China in the prior marketing year, guided by the slower-than-expected reported weekly pace to date. Crush for 2025/26 is raised 0.1 million tons on higher use by Pakistan, South Africa, and the United Kingdom”.

“With exports unchanged, global ending stocks are raised 1.0 million tons to 125.3 million, mainly on higher stocks for China. Another notable revision is higher palm oil production for Malaysia for 2024/25 and 2025/26 based on an expected recovery after widespread flooding impacted operations earlier in the year”.

 

World and U.S. Data Combined for Coarse Grains and Oilseeds:-

 

Factor: Million m. tons

Coarse Grains

Oilseeds

Output

  1,551*

692

Supply

1,865

834

World Trade

   238

215

Use

1,562

581

Ending Stocks

    302

      144


*Values rounded to one million metric ton

  (1 metric ton corn= 39.37 bushels. 1 metric ton of soybeans = 36.74 bushels) 

(“ton” represents 2,000 pounds)


 

Dr. Simon M. Shane
Simon M. Shane
Contact     C. V.















































































































































































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