News for the Egg Industry Worldwide
June 2007/Volume 112 Number 6
2007 Shaping Up to be Strong Year for Profits
Industry News
Supply Management: the Key to Profits
On the Road with John Todd
Must Cage-Free Be Your Future?
Emerging Egg Technology
Industry Calendar
Marketplace
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www.wattpoultry.com
2007 Shaping Up to be Strong Year for Profits
How Egg Producers
Will Maximize Profits
for Rest of 2007
In a survey of egg producers,
readers of Egg Industry and Egg
Industry Insider were asked in late
April what measures they were
taking or considering to maximize
profits for the remainder of 2007.
Here are some of their responses:
➤ Spray foam insulation, sealed
all air leaks, improved air flow;
➤ The only way that we can assure our industry that we could have
consistent profitability is to create a
quota system like the potato growers. This concept has not gone over
very well in the past, but I believe it
is time to try and develop a plan we
could all adopt;
➤ Examining all costs of production for possible savings;
➤ Keep the market demand fulfilled at all times;
➤ Taking loans to expand the
business. Get and develop a new
site. Pay more attention to biosecu-rity;
➤ Early sales and early molt;
➤ Longer lay out between flock,
early molting, and early sale of
some flocks. Taking some low-pro-ducing flocks with high feed cost
out of production up to four weeks
before sell out;
➤ Early molting where appropriate. Direct appropriate participa-
—Continued on page 3
By Edward Clark, Editor
In early May, the profit picture for
U.S. egg producers was nothing
short of phenomenal: the Urner
Barry Midwest large price quote was
$1.06/dozen, nearly double year-ago
levels, and well above the three-year
average of 65 cents. At the time of year
when producers typically lose money,
they were showing strong profits, even
with high feed costs.
Why such strong prices? Two key
reasons why in the view of Gene Gregory, president and CEO of the United
Egg Producers, Atlanta, Ga.:
➤ “The industry did a better job of
controlling the supply side, getting rid
of more hens and molting more”; and
➤ “We took another export order to
be filled.”
“The net effect,” Gregory says, “is
that prices were as high as they’ve ever
been for this time of year.” Gregory
notes that shell egg producers need
about an 85-cent quote to break even
with today’s feed costs.
Survey: Many Cutting Back
A survey conducted in late April by
Egg Industry and Egg Industry Insider
(see charts) bears out Gregory’s view
How do you expect the remainder of
2007 profits to compare with 2006?
Lower by 5-10%,
6.1%
Lower by less
than 5%, 1.5%
Lower by more
than 10%,1.5%
No change,
21.2%
Higher by 10%
or more, 24.2%
Higher by 5-10%,
34.8%
Higher by less
than 5%, 10.6%
A survey conducted in late April by Egg
Industry and Egg Industry Insider
found that most producers expect profits
in the rest of 2007 to exceed that of
2006.
that producers are cutting back on layer
numbers. When asked, “Do you plan
to reduce flock numbers between now
and the rest of the year,” 41.9 percent
said yes, with 58.1 percent saying no.
Of those who said they would reduce
flock numbers, 40.5 percent said by 5
