Egg Production Down Slightly in 2012
Table egg production is expected to total 6.6 billion dozen in 2012, down slightly (less than 1 percent) from 2011. While 2012 is expected to have improving economic conditions and higher prices for many red meat products, egg producers – after production increases in 2010 and 2011 – are not expected to have the consistently higher prices they need as an incentive to expand production until late in the year. While the rate of lay is expected to increase very gradually, the decrease in production is expected to come from a reduction in the size of the laying flock.
Hatching egg production is expected to total 1.1 billion dozen in 2012, an increase of 4.5 percent from 2011. The expansion in hatching egg production is dependent on the growth in broiler production, as the majority of hatching egg output is for broiler chick production.
Egg Production Higher in First Quarter 2011
Table egg production totaled just over 1.6 billion dozen in first-quarter 2011, up about 1 percent from the previous year. The average number of birds in the table egg flock in first-quarter 2011 was marginally lower than the previous year, but the rate of lay for table egg hens in first-quarter 2011 was up 1 percent. Table egg production for the rest of 2011 is expected to continue slightly higher than the previous year. Production of hatching eggs in first-quarter 2011 was 262 million dozen, down 2 million dozen, or almost 1 percent, from the previous year. Hatching egg production is expected to remain below the previous year during the remaining three quarters of 2011, as broiler production is expected to be lower in the second half of the year.
Egg Prices Higher in 2012
Improved overall economic conditions in 2012 are expected to generate greater demand for shell eggs and egg products, especially from the food service sector. However, higher production is expected to offset the demand and leave overall wholesale egg prices in 2012 at $1.00 to $1.08 per dozen, only slightly higher than in 2011.
During first-quarter 2011, the wholesale price in the New York market averaged $1.06 per dozen for Grade A large eggs, down 16 percent from the same period in 2010. Part of the sharp drop in prices is due to the fact that the Easter holiday was not until late in April, so the normal runup in prices did not occur until secondquarter 2011. Although shell egg prices have fallen seasonally since the Easter holiday, the higher prices in April are expected to push the second-quarter price in the New York market to $0.97 and $0.99 per dozen, up 16 percent from the previous year.
Exports Up to 250 Million Dozen in 2012
Egg exports are expected to expand by 3 percent in 2012. As with broiler products, higher shipments in 2012 are primarily expected to be generated by stronger demand from a number of Asian countries.
Egg exports are expected to contract in 2011, with smaller shipments to Mexico and Canada and less demand for processed egg products by a number of European Community (EU) countries. In first-quarter 2011, egg and egg product exports totaled 67 million dozen, up 17 percent from the previous year. Much of the growth occurred in March, when shipments were up 26 percent from the previous year. Strong egg prices, especially early in the year, helped to hold down shipments. While exports in all categories increased, shipments of hatching eggs and table eggs were especially strong, rising 26 and 25 percent compared with a year earlier. Most hatching eggs go to countries in the Western Hemisphere, and the largest markets for shell eggs for consumption were Hong Kong and Canada.