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Egg Industry Center issues 29-Year Summary of Data

  

Jul 30, 2012

The Egg Industry Center has prepared a database for table egg data which is available from Maro Ibaraburu of the Egg Industry Center.  Data was assembled and tabulated by Don Bell, Poultry Poultry Extension Specialist (Emeritus).

The 66-page document includes tables relating to:-

  • Chick production
  • Pullet placements
  • Flock size
  • Hen slaughter
  • Molting
  • Flock egg production
  • Retail egg prices
  • Ex-farm revenue
  • Production costs
  • Cost of corn, soybean meal and feed
  • Details of regional production and deficiencies
  • Producer income minus costs
  

This significant data is depicted in summary form in the table below.

Progression of Significant Production and Cost Parameters U.S. Egg Production Industry 2002 - 2011

Year

Avg Hen Population (million)

Percent
(Rate of Egg Production)

Egg Production Billion eggs

Breaking %

Average ex-farm Price c/doz

Nest run production cost c/doz

Feed Cost $/ton

Margin c/doz

Retail Price c/dozen

Per capita consumption

2002

278.2

72.7

6.19

30.6

42.0

46.4

131

   -4.4

103.2

256

2003

278.5

73.2

6.22

30.1

59.3

48.3

141

  11.0

124.4

256

2004

283.3

73.5

6.37

30.3

54.0

46.1

152

    7.8

134.0

257

2005

284.9

73.9

6.41

31.9

35.3

41.8

130

   -6.5

121.8

255

2006

288.2

74.4

6.53

31.2

38.0

43.6

138

   -5.6

130.6

256

2007

284.9

74.2

6.46

30.9

79.6

51.5

179

  28.1

167.6

250

2008

280.1

74.9

6.40

32.0

93.8

64.8

238

  29.0

198.7

249

2009

280.8

75.7

6.48

30.8

65.6

58.7

206

    6.9

166.4

248

2010

281.4

76.2

6.53

31.6

69.9

62.8

217

    7.1

166.0

248

2011

282.2

77.0

6.59

31.6

79.6

76.9

290

    2.6

177.0

247

 

 

 

 

 

 

 

 

 

 

 

Mean

282.3

74.5

6.42

31.1

61.71

54.1

182.2
+1.78

 

149.0

252

Data from EIC Report

The following comments are provided on the significant perimeters over the past ten years:-

  • Hen numbers have increased by 1.4% over the ten year period or 3.8 million hens in total.  Within this figure however there has been considerable consolidation with five companies in 2002 with more than 10 million layers amounting to 74 million.  In 2011 there were nine companies with more than 10 million layers representing 134 million hens.
  • The rate of egg production has increased annually over the past ten years with a gain of 5.9% on a hen a week basis.  In large measure this improvement of 0.6% per annum reflects genetics with a value is however lower than the ___ genotype claimed by the major primary breeders.  The effect of higher cage space appears evident from 2008 onwards.
  • Total egg production advanced from 6.19 billion to 6.42 billion or 6.5%.  This is in fact due to a 1.4% increase in hen numbers and a 5.9% increase in production.
  • The percent of eggs subjected to breaking has increased by 0.5% in ten years.
  • The average ex-farm price is subject to seasonal variation with peaks in April and during the period October through December.  The average price as determined from data connected by the USDA-AMS and packaged by URNER-Barry shows an increase of 41.5 cents per dozen in comparing 2002 with 2011.  This represents an average 8.9% per annum increase.  It is noted that in 2008 there was a marked increase in cost production associated with the marked elevation in feed cost due to the draught.  A similar situation will re-occur in late 2011 through 2012 given the current climatic conditions and concurrent diversion of corn to ethanol.
  • Nest run production costs has increased by 30.5 cents per dozen or 65.7% providing an average estimation of 6.6 cents per dozen annually over the ten year period.
  • Feed costs are the most significant factor influencing production costs and profitability.  During the ten year period the average layer feed cost increased from $130 per ton to 290 per ton or an average of 12.1% per annum.  Given the current situation with represent to projected production of corn and soybeans (see commentary on the WASDE report above) feed cost may increase by $32 $50 per ton depending on rain fall during the next four weeks, the administration policy towards ethanol production, exports and recovery in the economy.
  • The average margin representing the difference between the ex-farm revenue and the next run production cost has averaged 1.78 cents per dozen over the ten year period.  The table shows wide swings from a loss of 6.5 cents per dozen in 2005 to two consecutive years with margins of 28 and 29 cents per dozen respectively (2007/2008).
  • The retail price of eggs has increased by an average of 7.1 cent per year over the ten year period with an average of 149 cents per dozen.  The range within the ten year period is extreme extending from 103.2 cents per dozen in 2002 to 198.7 cents per dozen in 2008.
  • Per capita consumption as demonstrated a steady decline from 256 eggs in 2002 to 247 in 2011 or a decline of 0.9% per year.  The promotional programs of the AEB have not been reflected in increased consumption although it could be held that without the support in the form of research, advertising and public relations the decline may have been greater.  The population of the US has increased from 290.6 million to 311.8 million in the ten year review period.  The ratio of hens to humans has declined from 0.96 to 0.90 over ten years.  This figure may however be distorted by the number of undocumented Latino population which is known to consume eggs at a rate higher than other demographics.  In 2002 29.3% of total consumption was in the form of egg products.  This value increased to 31.6% in 2011 representing a 0.2% annual increase.  It is suggested that emotional efforts to improve consumption of eggs in the form of egg products would effectively create greater demand and the equivalent resourced devoted to shell eggs.  Consumption of egg products per person represented 38.4 eggs per capita in the five year period 1983 to 1987 and rose sharply to 72.2 eggs per person during the five year period of 1998 to 2002.  Thereafter there was a virtual plateau indicating saturation of demand which was met in earlier years by expansion of the breaking industry and development in in-line breaking operations to satisfy the in-service and QSR markets.