Egg Industry News and Commentary

  —  Aug 18

 
Export of Shell Eggs and Products, January-June 2017.

    

USDA-FAS data collated by USAPEEC, reflecting export volume and values for shell eggs and egg products are shown in the table below comparing the first half of 2017 with the corresponding period in 2016:-

 

U.S. EGG EXPORTS FOR JANUARY-JUNE 2017 COMPARED WITH THE CORRESPONDING MONTHS IN 2016

    PRODUCT

  Jan.-June 2016  

Jan.-June 2017

   Difference

Shell Eggs

 

 

 

Volume (m. dozen)

  58.1     

     55.7

 - 2.4      (-4.1%)

Value ($ million)

  59.0

     54.2

 - 4.8      (- 8.1%)

Unit Value ($/dozen)

    1.02

      0.97

  -0.05    (- 4.9%)       

Egg Products

 

 

 

Volume (metric tons)

  10,372

 21,658

 +11,286  (+108.8%)

Value ($ million)

     31.3

     55.6

    +24.3   (+77.6%)

Unit Value ($/metric ton)

   3,018

   2,564

    -454     (-15.0%)

Source USDA-FAS/USAPEEC

SHELL EGGS

Shell egg exports from the U.S. during January-June 2017 decreased by 4.1 percent in volume and 8.1 percent in total value compared to the corresponding period in 2016. Unit value was lower by 5 cents per dozen for the six-month comparison between 2016 and 2017. Hong Kong was the noteworthy importer, with 14.2 million dozen representing 26.4 percent of volume and 30.8 percent of value of U.S. shipments of shell eggs.

The UAE attained second in rank with 13.8 percent of volume and 11.2 percent of value. Canada ranked 3rd among importers during the first six months of 2017, based mostly on economic factors and self-sufficiency rather than as a result of HPAI embargos, since our neighbor recognizes regionalization. Mexico ranked 4th among importing nations with 7.4 million dozen up 42 percent in volume compared with the first half of 2016.

Prospects for additional exports of shell eggs to South Korea are limited until the Nation accepts regionalization with respect to “pop-up” cases of LPAI or HPAI. Other considerations determining purchases by South Korea will include price, shell color and intensity of yolk pigmentation as determined by consumer demand. South Kores appears to have controlled the H5N6 epornitic requiring depopulation of 25 percent of all commercial poultry. Restocking is in progress.

EGG PRODUCTS

The total volume of exported egg products during January-June 2017 increased by 108.8 percent and total value was higher by 77.6 percent compared to the first six months of 2016. Unit value decreased by 15.0 percent to $2,564 per ton from $3,018 in 2016, reflecting the relationship between World supply and demand. Export volume during the first six months of 2016 was constrained by the after-effects of the 2015 HPAI epornitic, as flocks had not been completely restocked.

During January-June, Japan represented 26.8 percent of the total U.S. export volume with 5,800 m. tons due to the losses experienced from H5N6 HPAI. South Korea was the second ranked importer with 4,199 m. tons representing 19.4 percent of volume and16.3 percent of value at $9.1 million. Mexico increased volume for January-June 2017 by 105 percent and value by 61 percent compared to imports from the U.S. during the corresponding period in 2016. During the first six months of 2017 the 3rd ranked EU imported 1,821 m. tons of egg products presumably due to shortages occasioned by H5N8 HPAI. Restoration of normal supply relative to demand now prevails in the U.S. as the flocks of in-line breakers and their suppliers have been completely repopulated.

COMMENT

Prospects for future short-term exports of shell eggs will be limited by the willingness of importers to accept the OIE principle of regionalization. This concern follows the February cases of North American lineage H7N9 HPAI in broiler breeders in Tennessee, Kentucky and a single case in Georgia. There have not been any reported incident cases in commercial flocks for 18 weeks despite intensive surveillance. The statutory OIE 90-day period has expired from the time of decontamination of the last reported case of avian influenza.  

Most importing nations, with the noted exception of China, are now applying regionalization and permitting imports on a nationwide or state-exclusion basis following H5 or H7 AI infection. Generally pasteurized egg products should not be subject to any embargo imposed following reports of AI.