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AEB 2018 Annual Report

05/02/2019

According to the AEB Annual Report the Board ran a deficit of $4 million for financial year 2018 ending December 31st. Expenditures amounted to $28.9 million. Revenue of $24.6 million was derived from 246.4 million cases of eggs.

During 2018 Consumer marketing was the largest category at 53.2 percent of 2018 expenditures. Other cost allocations included egg-product marketing at 6.5 percent, food service at 8.2 percent, industry programs 6.9 percent and the Egg Nutrition Center 13.8 percent. It is noteworthy that administrative overhead and related expenses including Board meetings amounted to 6.1 percent of expenditures.

At the direction of the Board, the AEB increased consumer marketing expenditure by 67 percent with active campaigns intended to increase demand for eggs and egg products consistent with the mission of the Board. USDA projections indicate a net increase in per capita consumption of one egg to 279.9 or a 0.4 percent yearly increase. The Disney Pixar Incredibles-2 promotion and round-the-year marketing were notable achievements.

Market development included customized workshops for manufacturers, intensive promotion to the food service sector and activities directed towards universities and K-12 food service. Although AEB has worked closely with USAPEEC, exports of eggs and egg products have not increased to a level that offsets the evident excess in production due to an injudicious national flock size. State support was increased from $0.4 million to $1.1 million representing recognition of individual state associations that can mount “local” promotional campaigns.

Funding for industry programs were reduced 17 percent to $1.98 million, and egg product marketing expenditure was lowered by 19 percent to $1.88 million. Expenditures were diverted mainly to consumer marketing.

The American Egg Board activities should not be judged simply by increases in per capita consumption. The Board has responded both proactively and reactively to issues relating to cholesterol that emerged recently and also considered to substitutes for eggs, especially in the liquid segment of the industry following unprecedented price rises in 2015 and 2016 following the HPAI eponetic.

Anne L. Alonzo, president and CEO, her newly appointed staff and the Board should be complimented on prudent management of check-off funds, innovative programs and promoting the image of eggs among consumers while developing new markets and products.