Back into profit in August
Both the price and cost of eggs in August show a rise after a decline
in summer months.
The latest summary of costs re;ect- ing August 2009, distributed by Don Bell of the University of California,
Riverside con;rms a restoration to profitability following the down months of
May through July, given an average U.S.
production cost of 56.7 cents/dozen and a
USDA price of 57.9 cents/dozen (
Urner-Barry Midwest price of 99.9 cents/dozen)
pro;t attained 1. 2 cents/dozen or 2. 2 cents/
dozen respectively.
75.
65.
55.
45.
35.
25.
15.
The bene;cial effect of stable to declining feed cost ($205/ton July; $201/ton
August) was largely responsible for the
improvement coupled with a higher real-ization for the month. During the preceding three months loss averaged 16. 9 cents/
dozen with USDA cost of 43.9 cents and a
60.8 cents/dozen production cost. It is noted that effective January 2009, production
costs incorporate a value of 14.7 cents/
dozen for labor, depreciation and interest.
Cents/dozenCents/dozen
5.
- 5.
- 15.
-25.
Jan Feb Mar Apr May
Midwest 33.9 8. 7 10. 1 20. 3 -21.5
U.S. 31.0 5. 2 6. 9 18. 5 - 20. 1
Thinking ahead
Projections of national ;ock size show
a seasonal peak value of 281.3 million
hens on December 1. During the January
to June 2009 period, ;ock size averaged
282.3 million hens. For the corresponding
period in 2010, Don Bell projects a 1.1%
decrease to an average of 278.3 million
hens.
10
9
8
7
6
The August to December 2009 UBMW
quote is forecast to be 105.2 cents/dozen
with a range of 99.9 cents/dozen in August
rising to 117.3 cents in November and December. Of this year, the forward projection for the ;rst half of 2010 provides an
average of 101.5 cents/dozen with a range
of 90.1 cents/dozen in May from a high
price of 109.7 cents/dozen in January.
5
4
3
2
1
Jan Feb Mar Apr May
Midwest 89.8 64.3 65.0 76.0 37.6
U.S. 89.6 63.9 64.3 77.1 41.2
Since breakeven, UBMW will be in the
range of 100 to 103 cents/dozen, losses are
anticipated for most producers of generic
eggs during the second quarter of 2010. EI
14 • Industry Egg • October 2009 • www.WATTAgNet.com
Monthly profits U.S. vs Midwest 2009
Month
Jun Jul Aug Sep Oct Nov Dec Total Avg
-25.3 - 2. 3 3. 7 3. 4
-25.1 - 5. 5 1. 2 1. 5
Comparison of monthly egg profits in 2009 from Jan. to Aug. between the Midwest and
rest of the U.S.
Courtesy of Don Bell, University of California, Riverside
U.S. vs Midwest 2009— Producer Egg Prices
Month
Jun Jul Aug Sep Oct Nov Dec Total Avg
35.5 52.8 57.8 59.7
38.6 51.9 57.9 60.6
Producer egg prices in the Midwest and rest of the U.S. for Jan. through Aug. 2009.
Courtesy of Don Bell, Univeristy of California, Riverside
