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Summary - Production and consumption of egg and egg products in selected countries expanded in 1996, with continued growth expected in 1997. Much of the growth was concentrated in China, and to a lesser degree in North America. The United States continues to dominate the export markets for both table eggs and egg products, while shipments of hatching eggs actually declined in 1996. For 1997, U.S. exports are expected to continue to grow, but at a slower pace than in 1996.
Egg production in selected countries increased by roughly 4 percent in 1996 to more than 701.5 billion eggs. (Production estimates include table eggs and eggs for hatching.) Increased production in China accounted for a majority of the growth; production there increased to 360 billion eggs, a 7.4 -percent increase from 1995. Production in North America, supported by a 1-percent increase in Mexico and a 3- percent increase in the United States, also expanded in 1996. Egg production in other regions did not change significantly in 1996. Production in the EU actually declined in 1996, by approximately 1 percent.
In 1997, egg production in selected countries is expected to expand again by roughly 4 percent, again based primarily on increased production in China. Production in China is expected to reach nearly 385 billion eggs, a 6.5-percent increase from 1996's level. Production in North America, led by a 3.7-percent increase in the United States, is also expected to expand.
Egg consumption, comprising table eggs and egg products in selected countries, also increased in 1996. As was the case with production, the majority of the increased consumption occurred in China, where it grew by approximately 7 percent and accounted for approximately 90 percent of world consumption growth. Consumption expanded only slightly in the United States in 1996, by less than 1 percent to 62 billion eggs, while consumption actually declined in the EU and in the former Soviet Union. Per capita table egg consumption in the United States has remained more or less stable since 1992, fluctuating between 231 and 235 eggs per year. For 1997, per capita egg consumption in the Uniteed States is expected to reach 239 eggs, the highest level since 1988. The growth in consumption is led by the increased use of egg products in the food service and restaurant industries.
Egg exports in selected countries fell slightly in 1996, due primarily to decreased exports from the Netherlands, where egg exports fell by nearly half, from 1.6 billion eggs to 885 million eggs. The reduction in exports was due primarily to a decline in EU export restitutions that were paid to exporters, and an increase in domestic consumption which lowered export availability. Egg exports from the Netherlands are expected to continue to fall in 1997, again by roughly half, to 425 million eggs, again as a result of reduced restitutions and stronger domestic demand.
The value of all U.S. egg and egg products exports increased substantially in 1996, by 26 percent above the level recorded in 1995, to a record $215.8 million. Although U.S. egg and egg products are shipped to more than 40 different countries, these exports are heavily concentrated in only two markets. More than 40 percent of all U.S. egg and egg products exports are destined for Japan and Hong Kong. Japan is a major importer of U.S. egg products, while Hong Kong is the destination for 53 percent of all U.S. table eggs. The value of U.S. hatching eggs exports also increased by 11 percent in 1996.
For 1997, continued growth is expected in all three categories, but at a slower pace: the volume of shipment is expected to increase by roughly 8 percent, while the value of exports may increase at a slightly higher rate. The following sections cover U.S. egg and egg products in greater detail
The value of U.S. table egg exports increased sharply in 1996, up 20 percent to $62.1 million, compared with $51.8 million in 1995. Nearly all of the growth occurred in Hong Kong, the destination of more than half of U.S. table egg exports in 1996. Shipments to Hong Kong totaled 52 million dozen eggs, valued at more than $33 million. Mexico surpassed Canada to become the second largest destination for U.S. table egg exports in 1996. The value of U.S. shipments to Mexico more than doubled; from $3.8 million in 1995 to $8.3 million in 1996.
The EU is also a growing market for U.S. table egg exports. U.S. shipments to the EU, bound primarily for the Netherlands, reached $3.3 million in 1996, more than seven times the value shipped in 1995. According to industry sources, however, U.S. shipments to the Netherlands consist mostly of "breaking stock" eggs for use in the egg products industry. The processing firms in the Netherlands then re-export the egg products to 3rd country markets.
Top 5 Export Destinations for U.S. Table Eggs by Value ($1,000)
Hong Kong 33,300
Mexico 8,376
Canada 7,533
U.A.E. 3,749
The Netherlands 2,639
Exports to the Middle East, a traditional market for U.S. table eggs have, however, declined significantly from their 1995 levels. Exports to the UAE, our largest Middle Eastern market, have fallen from $7.1 million in 1995 and to $3.7 million in 1996, a decline of 47 percent, due primarily to increased competition from exports of lower priced and lower quality eggs from India. Exports to other Middle Eastern destinations have also fallen.
The big success in 1996 for the U.S. egg industry, however, was the growth in U.S. egg product exports, which nearly doubled to $86.3 million, up from $45 million in 1995. Once again the primary export destination was dominated by a Pacific Rim market. Japan was the destination for more than 60 percent of U.S. egg product exports. U.S. egg product exports to Japan rose to a record $49.1 million in 1996, a 77- percent increase from 1995. The increase in exports to Japan was not based on increased volumes. Stronger demand for higher value further processed egg products by the Japanese bakery and confection industries has led to a higher export value. Also, the value of U.S. egg product exports to Canada and Mexico more than doubled in 1996, to $11 and $9 million, respectively.
U.S. egg products were shipped to an additional 57 other countries: other important destinations include the Netherlands and Germany. The products shipped include dried whole eggs, dried egg yolks, and dried egg whites. Also, exports of high value egg products such as frozen eggs and "shelf stable" liquid eggs for use in the food service industry are expected to continue to grow.
The Top 5 Export Destinations for U.S. Egg Products by Value ($1,000) Japan 49,137 Canada 11,529 Mexico 9,807 The Netherlands 2,968 Germany 2,704
In contrast to the other two categories, the value of U.S. exports of hatching eggs in 1996 increased only moderately, up by 11 percent in value terms from 1996 to $58.2 million. U.S. exports in 1996 by volume, however, fell to 27.9 million dozen, 4.-percent less than in 1995. The primary export destinations for U.S. hatching eggs are Canada and Mexico, which account for more than half of all U.S. hatching egg exports. The value of exports to these markets increased by 45 percent in 1996, while the value of shipments to other destinations actually declined. While U.S. hatching egg shipments are generally targeted to our NAFTA partners, exports to 55 other countries were recorded in 1996. Other important markets for U.S. hatching eggs include Jamaica, Trinidad and Tobago, and the Netherlands.
The Top 5 Destinations for U.S. Hatching Eggs by Value ($1,000) Canada 25,144 Jamaica 6,102 Mexico 4,737 The Netherlands 2,407 Trinidad and Tobago 2,320
In 1997, the growth in egg and egg product exports is expected to continue, but likely at a slower pace than the 26-percent growth rate established in 1996. Egg exports are forecast to increase by 8.2 percent in 1997 to 280 million dozen eggs, up from 253 million dozen in 1996.
Slower growth is expected for a number of reasons, including increased competition from other sources. Increased competition from India for the Middle East trade is likely to continue to limit U.S. egg exports to the U.A.E., our third largest market.
Also, the persistent strength of the dollar against the Japanese yen is expected to slow the growth of U.S. egg products exports. Furthermore, U.S. table egg shipments to Hong Kong will not likely continue to increase at the pace established in 1996, due to competition from Chinese eggs, which started to appear in greater quantities in Hong Kong during the latter stages of 1996.
Despite the expected slow down in export growth, prospects for U.S. egg exports remain bright. The U.S. egg industry can deliver high quality eggs at competitive prices to a wide variety of destinations. As global food processing industries continue to expand, especially those in the Pacific Rim, demand for U.S. egg products is expected to continue to grow.
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