Egg Industry - January 2008

C rystal Ball Has 2008 Looking
Like Another Profitable Year
But Major Animal Welfare Challenges in Year Ahead
By John Todd

The very bright factor coming out of 2007 and carrying into 2008 is that the industry, both shell eggs and egg products, enjoyed record-breaking prices throughout the year. The good news was that egg producers and processors made money, despite high feed costs. It was evident at meetings and conferences held throughout 2007.

The key reason for a profitable 2007: Despite the fact that the U.S. population grew by some 3 million, the number of layers decreased by 4 million. Fewer hens make for a better price at the marketplace. In addition, egg producers maintained lower flock sizes to better accommodate the summer season, which historically has slower egg sales.

Egg producers also continued to maintain their schedules for the increase of cage space for their hens in compliance with the United Egg Producers (UEP) Certified Animal Welfare program. This meant fewer hens housed, which brought the national inventory down. Other pertinent factors that contributed to the year-long price advantage were exports of both shell and egg products, and decreased egg drying inventories. And with more corn going into ethanol and the resulting higher feed costs, producers were reluctant to increase their flock size.

2007 Factors Continue in 2008

Many of the factors that created the prosperity in 2007 should continue into 2008. Producers are continuing the UEP program for cage space increases, ethanol production seems to be continuing and the export markets should continue to be a possibility. Predictions, however, are for a slightly larger layer flock inventory to take place in 2008. Current numbers from Don Bell, poultry specialist (Emeritus) at the University of California-Riverside and UEP indicate the number of birds producing eggs

The
key reason for a
profitable2007: Despite
the fact that the U.S. popula-
tion grew by some 3 million, the
number of layers decreased by
4 million.

will increase about 3 percent to 5 percent.

Strategists are monitoring all of the factors that contribute to these predictions on a monthly basis, but as of right now, the outlook is good for a favorable price for the year. Activities by the animal welfare groups throughout the country also can cause a wait and see attitude with producers relative to their expansion plans.

In most cases, the ever-present and growing initiatives by animal welfare activists dominated 2007 producer meetings throughout the country. With the elimination of all animal agriculture their ultimate goal, these well-heeled, strong-voiced groups are slowly chipping away at animal food production industries by asking them to change methods that have been in existence for many years, providing the most efficient and nutrition-rich food supply in

history. New methods create additional cost and have added nothing to animal welfare. Cost of food has suffered, affecting the part of the population that needs the efficiency the most.

Through the UEP’s Scientific Committee, that has been working for years on layer hen cage guidelines, another set of guidelines is now available for the non-cage producer. The new guidelines have been incorporated into the UEP Certified program. Many of the egg farmers that previously concentrated on cage facilities have built or renovated barns to accommodate non-cage birds.