Export of Shell Eggs and Products, January-July 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. This is demonstrated by the 182 percent drop in volume of shell egg exports from 2012 (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 as losses from HPAI rose in the last quarter with a consequential rise in domestic price. This situation persisted through the first half of 2024 but with prospects for improved volume based on decreasing prices.

It is probable that lost markets other than in the USMCA and Caribbean nations will be reclaimed 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-JULY 2024 COMPARED WITH 2023

SHELL EGGS

Shell egg exports from the U.S. during the first seven months of 2024 declined by 5.8 percent in volume and 11.3 percent in total value compared to the corresponding months in 2023. Unit value increased by 0.5 percent to $2.07 per dozen compared to the corresponding period in 2023.

Shell egg exports from the U.S. during July 2024 declined by 6.5 percent in volume but were higher by 87.8 percent in total value compared to the corresponding month in 2023. Unit value increased by 101.7 percent to $2.40 per dozen compared to July 2023.

Canada was the leading importer of shell eggs during the first seven months of 2024, with 32.4 million dozen representing 71.1 percent of volume and 68.7 percent of the $94.5 million total value of U.S. shipments of shell eggs. Unit price over January-July 2024 was $2.00 per dozen compared to $2.50 per dozen for all consignments in January-July 2023. Imports by Canada are driven by consumer demand balanced against availability through the controlled supply situation. This inhibits flexibility, necessitating imports from the U.S. to supply shortfalls especially when additional losses occur due to HPAI or under conditions of high demand. This model assures the approximately 1,000 independent producers a stable income but is supported by higher prices to consumers. During July 2024 Canada imported 4.1 million dozen up 86.4 percent over the corresponding month in 2023. Value was up 259 percent to $9.7 million. Unit value was 91.9 percent higher to $2.36 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 $17.3 million during January-July 2024, with 7.6 million dozen representing 16.7 percent of volume and 18.2 percent of the total value of U.S. shipments of shell eggs. Unit price over January-July 2024 was $2.28 per dozen

Mexico was the third-ranked importer of shell eggs in January-July 2024 with a volume of 1.5 million dozen representing 3.3 percent of export volume and 2.8 percent of value. Unit value of $1.69 per dozen is compared to an average value of $2.07 per dozen for all exports. During July Mexico did not import shell eggs from the U.S. that are normally used for breaking.

The average 12-month trailing USDA benchmark price for nest-run large shell eggs was $1.70* per dozen weighted by high prices caused by shortages during the first quarter of 2023 from depletion of flocks infected with HPAI.

*USDA 12-month USDA benchmark nest-run unit prices per dozen: August, $0.90; September, $1.00; October, $0.89; November, $1.65; December, $1.81; January 2024, $1.72; February, $2.51; March, $1.87; April, $1.35; May $1.35; June $2.07 and July $3.33.

EGG PRODUCTS

The total volume of exported egg products during the first seven months of 2024 decreased 15.9 percent to 16,162 metric tons compared to January-June 2023. Total value of $71.9 million was lower by 11.9 percent compared to January-July 2023. Unit value increased by 4.8 percent to $4,448 per ton compared to January-July 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-July 2024 receiving 4,657 metric tons from the U.S. valued at $21.2 million representing 28.8 percent of volume and 29.4 percent of value with a unit price of $4,552 per metric ton. Volume for January-July 2024 was down by 33.3 percent and value was lower by 37.1 percent compared to the corresponding months in 2023. During July 2024 Japan imported 510 metric tons, down 37.3 percent over the corresponding month in 2023. Value was down 47.8 percent to $2.4 million but unit value was 16.8 percent higher to $4,705 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-July 2024 based on a volume of 3,393 metric tons with a value of $12.8 million, representing 21.0 percent of volume and 17.8 percent of the total value of U.S. exports of egg products. Exports to Mexico were up by 9.3 percent in volume but 17.4 percent lower in value compared to January-July 2023. The unit value of $3,772 per metric ton can be compared with the average unit value for U.S. exports of all egg products at $4,448 per metric ton. During July Mexico imported 362 metric tons valued at $1.4 million. Volume was 27.2 percent lower and value was 48.2 percent below July2023 with a unit value of $4,230 per metric ton.

Canada was the 3^rd-ranked importer in January-July 2024 based on a volume of 2,346 metric tons with a value of $8.4 million. Canada represented 14.5 percent of volume and 11.7 percent of value with a unit price of $3,580 per metric ton. During July Canada was 3^rd- ranked as an importer with 302 metric tons representing 18.2 percent of exports of egg products up 43.1 percent from July 2023. Value was $0.9 million or 12.3 percent of the monthly total, up 125 percent from July 2023 with a unit revenue of $2,980 per metric ton. Volumes shipped reflect restoration of the institutional and food service sectors and the relative availability of domestic product in Canada.

The E.U.-27 advanced to the 4^th-ranked importer of egg products over the first seven months of 2024 with 1,384 metric tons. Value was $12.0 million with a high unit price of $8,670 per metric ton. During July the E.U. imported 109 metric tons of egg products valued at  $1.0 million with a unit price of $9,174 per metric ton.

South Korea was ranked 5^th among importers of egg products during January-July 2024 with a volume of 1,291 metric tons. Export value was $5.2 million with a unit value of $4,028 per metric ton. Comparing these values with the corresponding months in 2023, volume was 108.9 percent higher and value was up by 67.7 percent. Most flocks in South Korea have been restored to production after depopulation following 2022-3 outbreaks of HPAI. Import volume may have been influenced by recent limited but rising flock depletion. South Korea imported 91 metric tons during July 2024. 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.

Australia has emerged as an importer of egg products with 725 metric tons shipped during the first seven months of 2024 valued at $2.3 million with a unit price of $3,172 per metric ton. There were no imports in April, but 151 metric tons were shipped during both May and June but nothing in July. Depending on the HPAI situation that has required depopulation of 7 percent of the Nation’s hens, additional orders for shell eggs and products may be forthcoming.

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. During the first seven months of 2024 the USMCA imported shell eggs and products valued at $88.7 million. This represented 53.4 percent of all U.S. egg and product exports valued at $166.4 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.