Editorial

 

The Value of a Brand

May 24, 2013

     

It is estimated that 11% of U.S. shell egg production is marketed in branded form with an additional 3% under private labels.  The value of brands is exemplified by the growth of Eggland’s Best which has outstripped the volume of all competitors and generic eggs over the past twelve years. 

Successful increase in market penetration by a brand incurs risks.  Contamination of product, disease, failure to achieve label claims or peripheral issues such as welfare of flocks or compliance with immigration laws all influence public perception and hence the integrity of a brand.

     

Yum Corporation represents an outstanding example of how a brand can be degraded by a number of unfortunate circumstances, some of which could have been predicted. It is a matter of record that sales in KFC stores operated in China plummeted by 29% in April. 

This resulted in a significant impact on earnings of the parent company Yum Corporation since it is estimated that in 2011 the QSR operator had a 40% share of the fast-food market, estimated at $14 billion.

   

Egg Industry News

 

Salmonella Data from FoodNet

May 23, 2013

EGG-CITE is indebted to Dr. Eric Gingerich of the AVEP for forwarding the FoodNet report on Salmonella isolates by serotype in 2012.  S. Enteritidis led with 1,238 cases representing an incidence rate of 2.16 cases per 100,000 population.  The next in rank were S. Typhimurium (1.92/100,000), S. Newport (1.90), and S. Javiana (1.56).  The six other serotypes including S. Heidelberg and S. Saintpaul completed the top ten with a collective average value of 0.44 per 100,000 population and a range of 0.34 to 0.70.  In reviewing selected Salmonella outbreak investigations, the most recent series of cases attributed to eggs was the single extensive 2010 outbreak associated with the DeCoster family farms in Iowa. 

   
 

Update on HPAI in Mexico

May 23, 2013

     

According to news reports, a flock of 55,000 birds was depleted in Pueblo State as a result of a positive isolation of H7N3 HPAI avian influenza.  SENASICA attributed the localized outbreak to transfer of second-cycle hens from other states in Mexico with a previous history of avian influenza.

   
 

Taco Bell Tests Egg-Waffle

May 23, 2013

     

According to Food Market.com Taco Bell will commence testing a waffle containing eggs in their California restaurant chain. Initial customer reaction appears favorable according to a company spokesperson who stated “we are pleased with the initial reaction from our customers and if the Waffle Taco does well in testing we’ll roll it out to all our restaurants that serve breakfast”.

The breakfast segment of the QSR sector is expanding but is highly competitive with offerings from McDonald’s Corporation, Burger King, Dunkin Donuts, Subway, Panera Bread, Tim Horton’s and local stores.  Increased servings of eggs are obviously beneficial for our industry, and are probably the major factor responsible for increasing per capita consumption in recent years in the U.S.

   
 

Egg Prices and Inventory

May 21, 2013

     


The USDA Egg Market News Report for Monday, May 20th confirmed a 14 to 19 cent per dozen increase for Midwest  Wholesale Extra Large and Large sizes over the previous week.

   

The latest Midwest prices were:-

         Extra Large        121  –  124  cents per dozen  
  Large   119 –  122  cents per dozen  
  Medium   99 –  102  cents per dozen  
  Breaking Stock   77 –  79  cents per dozen  
  Checks   61 –  65  cents per dozen  


During the past week the 6-area inventory increased by 7.6% to 1,009 thousand cases.

Specialty egg inventory declined by 5.2% to 110 thousand cases.

   
 

Progress in Crop Planting

May 21, 2013

     

The USDA Crop Progress Report for May 20th provided conformation of the industry and commitment of our Nation's farmers who advanced corn planting by a record 43% in a week. As of Monday 20th, 71% of the corn crop is now in the ground compared to a 5-year average of 76% but behind May 20th,2012 which recorded 95%.

Approximately 19% of the 2013 crop has emerged compared to a 5-year average of 46% reflecting delays in planting this season.

Farmers have now planted 24% of the soybean crop compared to the 5-year average of 42%. As of May 20th 3% had emerged compared to a 5-year average of 14% again attributable to late planting.

   
 

Lyons Challenges Attendees

May 21, 2013

     

During the Plenary Session opening the 29th Alltech International Symposium, Dr. Pearse Lyons, Founder and President of the company commented on the challenge to feed 7.5 billion on our planet by 2020. He listed a number of innovations to be provided by emerging technology:-

  • RFD Tags to track animals to allow individualized feeding
  • Improved feeding to control harmful emissions from CAFOs
  • GPS-assisted fertilization of fields
  • Algae to replace fishmeal in livestock and aquaculture diets
  • Elimination of antibiotics
  • Formulation of enzyme cocktails to maximize the nutrient value of livestock diets
   
 

Alltech Medal of Excellence awarded to Dr. Eugenia Wang

May 21, 2013

     

Alltech has awarded the 2013 Alltech Medal of Excellence to Dr. Eugenia Wang, University of Louisville, for her pioneering work in using high-throughput technologies to explore the molecular signatures of Alzheimer’s disease, other dementias and heart disease.

Dr. Wang’s research focuses on investigating the genetic mechanisms that may cause predisposition to infectious diseases, using microarray technology, proteomic profiling and several other high-throughput enabling platforms to study the genetic factors controlling how people respond to environmental exposures and the molecular mechanisms of wound healing, including response to microgravity and radiation.

   
 

Alltech Symposium

May 20, 2013

     

Alltech's 29th Annual International Symposium kicked off with a Sunday May 19th banquet attended by over 1,500 registrants from 76 nations. The program which will commence on Monday morning will attract over 2,500  attendees representing production, research, teaching and regulation in livestock and crop production

This year the program will comprise a series of 37 breakout sessions on diverse subjects with presentations and discussions led by experts in their respective fields.

   
 

Farm Bill Advances without Egg Products Inspections Act Amendment

May 20, 2013

     

According to a report in the May 15th UEP United Voices Newsletter, (download PDF) the Senate Agricultural Committee approved the 2013 Farm Bill by a vote of 15 to 5 without including the amendment to the Egg Products Inspections Act. 

This addition was to have been introduced by Senate Committee chairperson Debbie Stabenow (D-MI).  Extreme pressure was placed on the Committee by organized livestock groups to exclude the amendment which would otherwise have scuttled the Farm Bill.

   

Shane Commentary

 

Secretary Vilsack Intensifies Support of Organic Agriculture

May 21, 2013

     

Speaking to a receptive and partisan audience at the Organic Trade Association Policy Conference, Secretary of Agriculture Tom Vilsack emphasized the contribution of his Department to advancing the cause of organic agriculture. The Organic Trade Association represents 6,500 organic businesses including farmers associations, importers, exporters, shippers and processors.

He stated “organic is not the same as, it is its own separate commodity and needs to be treated as such”. He added “I am committed to that”. It is general experience from official reports and quotations that Secretary Vilsack is not recognized for his oratory or comprehensibility.

   
 

Urban Hens

May 21, 2013

     

During the past five years there has been a growing movement to maintain a small number of hens in back gardens in urban and suburban neighborhoods.  This raises the question of disease risk to the industry.  At the outset, it is strongly advised that commercial egg and broiler producers in counties where municipalities are considering allowing backyard chickens should not appear to openly oppose permitting legislation.  This will only create antagonism between aspirant poultry keepers and industry.

The backyard chicken movement has probably peaked and will wane as obvious problems become apparent.  These include the high cost of feed purchased in bags at pet and supply stores, the high cost of eggs produced, given low efficiency, predator loss, flies and parasites, disposal of excreta, risk of transferring Salmonella infection from hens to family members and the cost associated with erecting suitable housing and containment.

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

Industry Prices: Thu May 23
 Corn6.62 $/bu
 Soybeans15.00 $/bu
 Soybean Meal437.00 $/ton
 Eggs, Producer105  ¢/doz
 Eggs, Warehouse 119-122 ¢/doz