News for the Egg Industry Worldwide
February 2007/Volume 112 Number 2
Egg Executives Optimistic on 2007
Industry News
What the Crystal Ball Foretells
Does Egg Demand Have a Bright Future?
Get Ready for FDA’s New Rule
Industry Calendar
Marketplace
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E gg Executives
Optimistic on 2007
By Edward Clark, Editor
Following two years of red ink,
most egg industry executives are
optimistic that 2007 will be a profitable one. One key reason why: high
corn prices due to strong ethanol demand that has encouraged companies
to hold the line or cut layer numbers.
“The last three months have been
profitable and there is no reason to
think it will not continue,” says Larry
Seger, president of Wabash Valley
Produce, Dubois, Ind. He noted that
in late January, the Urner Barry price
in the Midwest was $1.21/dozen for
shell eggs, within 15 cents of all-time
highs. He estimated prices for the entire month would be close to $1.10 to
$1.15, more than 30 cents higher than
previous-year levels.
High grain prices have encouraged
the industry to match egg supply with
demand, he says. “People have to look
long and hard at putting up a 2 million
bird complex when they don’t know if
corn prices are going to be $2.50 or $7/
bu.,” Seger says.
Expansion: “Not Now”
“When I sit down with my brothers
and look at expansion, we say no, not
now, and it’s due to ethanol,” Seger
says. “The macro picture we’re having to look at is what the national energy policy is going to be,” he says.
He notes that there are 100-some odd
ethanol plants in existence with more
being planned that will take anywhere
between 2 billion to 5 billion bushels
of corn. The big question, he says, is
whether the nation continues with its
drive to energy self-sufficiency, re-
