The United States egg shortage and record-high prices are likely to last into next year, said a report from CoBank.
Highly-pathogenic avian influenza has led to the loss of 100 million egg-laying hens.
The report also said “consumer demand for eggs has skyrocketed in recent years, with per capita consumption growing 20 per cent from 2016-2019.
“Demand has also shifted away from conventional eggs as more consumers are choosing cage-free and other types of specialty eggs – further complicating the supply challenges.
“As well, nine states have enacted laws that require eggs sold in their states to be from cage-free hens.”
In Canada, under supply management the government requires egg marketing boards to keep the Canadian market supplied. In return, the marketing boards can control production to a level that covers production costs and allows some profit, return on labour and return on investment, minus the cost of quota.”
The confluence of all three factors is prolonging the timeline for bringing egg supply and demand into closer alignment. Until then, retail egg prices will remain elevated, CoBank said.
Rising demand for cage-free eggs has also outpaced supply in recent years. Currently, more than 120 million or roughly 40 per cent of the table egg layers in U.S. commercial flocks are housed in cage-free production systems. That compares with just 30 million layers housed in cage-free systems in 2015.
While the growth in supply of cage-free eggs has been substantial, more will be needed to adequately meet demand projections.
Consumer demand for eggs peaks twice a year – before Christmas and for Easter.
In the past, Canadian egg-grading companies, dominated by Burnbrae and Grayridge, have imported eggs from the United States for these peak-demand seasons, but have also declared surpluses in immediately after those seasons.
They dump the surpluses on the egg marketing boards and national agency and egg farmers foot the bills via marketing levies.
