REVIEW OF DECEMBER 2024 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 stakeholders

DECEMBER HIGHLIGHTS

• December 2024 USDA ex-farm blended USDA nest-run, benchmark price for conventional eggs from caged hens was 424 cents per dozen, up 60 cents per dozen or 16.4 percent from the November 2024 value of 364 cents per dozen. The corresponding December 2022 and 2023 values were respectively $4.37 and $1.56 cents per dozen. For annual comparison, average monthly USDA benchmark price over 2023 was 146.0 cents per dozen compared to 247 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 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.
• 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. Highly pathogenic avian influenza has emerged as a major driver with seasonal migration of waterfowl. Approximately 40 million hens and at least 2.0 million pullets were depleted in 2024 with close to 4 million during January to date.
• December 2024 USDA average nest-run production cost for conventional eggs from caged flocks over four regions (excluding SW and West), applying updated inputs was almost unchanged from November at 74.4 cents per dozen. The December average nest run production cost for other than caged hens was estimated by the EIC to be 93.4 cents per dozen. 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 price as delivered to warehouses.
• December 2024 USDA benchmark nest-run margin for conventional eggs attained a positive value of 349.6 cents per dozen compared to a positive margin of 290.0 cents per dozen in November 2024. Average nest-run monthly margin over 2023 was 64.2 cents per dozen compared to 155 cents per dozen in 2022.
• December 2024 USDA benchmark nest-run margin for cage-free eggs attained a positive value of 673 cents per dozen compared to a positive margin of 361 cents per dozen in November 2024. Average nest-run monthly margin over 2024 was 440 cents per dozen compared with 100 cents per dozen in 2023.

• The November 2024 national flock (over 30,000 hens per farm) was stated by the USDA to be down 0.4 million hens (rounded and a probable over-count) to 311.3 million compared to the revised October 2024 value of 311.7 million. Approximately 3.0 million hens returned to production from molt in November together with projected maturation of 21.5 million pullets, with this number offset by depletion of an unknown number of spent hens.
• November 2024 pullet chick hatch of 24.4 million was down 11.3 percent or 3.1 million chicks from October 2024.
• November 2024 exports of shell eggs and products combined were down 19.6 percent from October 2024 to 325,000 case equivalents representing the theoretical production of 4.3 million hens. Canada and the Caribbean nations represented 95 percent of shell egg exports of 181,000 dozen. Japan, Canada and Mexico represented 72 percent of exports of egg products amounting to 144,000 case equivalents. Volumes shipped are based on the needs of importers, competition, availability in the U.S. and FOB price offered.

TABLES SHOWING KEY PARAMETERS FOR DECEMBER 2024.

Summary tables for the latest USDA December 2024 flock statistics, costs and unit prices made available by the EIC on January 9^th 2025 are arranged, summarized, tabulated and compared with values from the previous December 9^th 2024 release reflecting November 2024 costs and production data as applicable. Monthly comparisons of production data and costs are based on revised USDA values.

VOLUMES OF PRODUCTION REFLECTING THE ENTIRE INDUSTRY

*USDA Revised

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

PROPORTION OF U.S. TOTAL HENS BY STATE, 2024¹

Based on a nominal denominator of 290 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

1. Values rounded to 0.1%

Rate of Lay, weighted hen-week (USDA) 81.8% November 2024. 82.2% December 2024

*Revised USDA

*Revised, using data from USDA Livestock, Dairy and Poultry Outlook December 16^th 2024 taking into account demand from the food service sector and presumably including the effect of HPAI depopulation.

EGG INVENTORIES AT BEGINNING OF DECEMBER 2024:

EGGS BROKEN UNDER FSIS INSPECTION (MILLION CASES) October 2024, 6.91* November 2024, 6.57

EXPORTS NOVEMBER 2024: (Expressed as shell-equivalent cases of 360 eggs).

*Representing 1.5 percent of National production in November 2024 (1.9 percent in October 2024).

COSTS AND UNIT REVENUE VALUES¹ FOR CONVENTIONAL EGGS FROM CAGED HENS

Notes: 1. Excludes SW and West *USDA revised

Components of Production cost per dozen:-

Ex Farm Margin (rounded to nearest cent) according to USDA values reflecting DECEMBER 2024:-

424.0 cents per dozen¹- 74.4 cents per dozen =349.6 cents per dozen (November 2024 comparison: 364.0 cents per dozen – 74.0 cents per dozen = 290.0 cents per dozen.

Note 1: USDA Blended nest-run egg price

COSTS AND UNIT REVENUE FOR EGGS FROM CAGE-FREE HENS

* USDA Revised

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

Ex Farm Margin (rounded to nearest cent) according to USDA values reflecting negotiated price for DECEMBER 2024:-

Cage-Free brown 766.0 cents per dozen¹- 93.4 cents per dozen = 672.6 cents per dozen

November 2024 455.0 cents per dozen - 93.4 cents per dozen = 361.6 cents per dozen

1. 
   Contract price, nest-run loose Range 135 to 235 c/doz. unchanged since July and unrealistic.
2. Range $1.65 to $3.35 per dozen
3. Unrealistic USDA prices!

* 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.