by Marsha A. Laux, content specialist, AgMRC, Iowa State University, mlaux@iastate.edu.

Updated May 2008 by Brianna Morrison, student, Iowa State University.

 

Prior to World War II, most egg production came from farm flocks of less than 400 hens. By the early 1960s, improved technology and the development of sophisticated mechanical equipment were responsible for a shift from small farm flocks to larger commercial operations. In the major egg-producing states, flocks of 100,000 laying hens are common, and some flocks number more than 1 million. Each of the 344 million laying birds in the United States produces from 250 to 300 eggs a year.  

Demand

Demand is driven by consumer consumption. Per capita consumption is a measure of total egg production divided by the total population.

 

The per capita egg consumption figures illustrate a slightly higher per capita consumption from 252 in 2000 to 255 in 2005. Changes in population and the demographic profile of consumers could indicate that the increasing Latino population consumes fewer eggs per capita than the general population.
 

The high point for per capita egg consumption was 402 eggs in 1945. Per capita consumption had been steadily declining due to lifestyle changes with more women working and to health concerns. Per capita consumption reached the lowest in 1991, but consumption has steadily increased as additional information about eggs and cholesterol has been made available to consumers. 

Of the 213.9 million cases of shell eggs produced in 2005:

• 125.2 million cases went to retail;
• 68.2 million cases were further processed (for foodservice, manufacturing, retail and export);
• 18.2 million cases went for foodservice use; and
• 2.0 million cases were exported.

Eggs have become attractive as a source of protein and as a versatile food source. While cholesterol intake has been a factor in the minds of health conscious consumers, the health benefits of eggs have been promoted by the industry. Research into functional or designer eggs has provided new demand for the Omega egg and for eggs with specific nutritional attributes. Attributes in demand for egg products are cage-free eggs, lower cholesterol eggs, Omega 3 eggs and eggs higher in vitamin E. Popularity of the various protein diets, where carbohydrates are limited and protein sources are allowed, have also been contributors to egg demand.

Research undertaken at the American Council on Science and Health, “The Role of Eggs in the Diet: Update” released in 2002 indicates that eggs have been shown to contain certain components that may actually have health benefits that go beyond basic nutrition. A substantial body of evidence shows that egg consumption of up to one per day has no detectable effect on heart disease risk in healthy people. Likewise, the Harvard School of Public Heath found no significant link between eating eggs and developing cardiovascular disease in healthy individuals.  

The Harvard Medical School also researched egg consumption and their role in protecting women against breast cancer. Evidence from a 2003 study indicates that teenage girls who regularly consume eggs are less likely to develop breast cancer later in life. While preliminary, these findings suggest that high levels of amino acids, vitamins and minerals may protect these women.

Other recent research supports the nutritional benefits of egg consumption. Research undertaken and included in a 2000 Journal of the American College of Nutrition reports that egg nutrients lutein and zeaxanthin, two antioxidants from the carotenoid family, may contribute to improving eye health and protect eyes from ultraviolet rays. These antioxidants are also found in leafy green vegetables, such as spinach, but the body metabolizes the lutein and zeaxanthin found in eggs more efficiently.  

Trade associations and industry groups have successfully campaigned to improve the image of the egg, nutritionally and economically. Nutritional studies and research has helped to combat the high-cholesterol image that struck a blow for the industry.

Production
Most eggs produced in the United States are table eggs for human consumption. The remainder of production is for the hatching market. These eggs are hatched to provide replacement birds for the egg-laying flocks and to produce broiler chicks for grow-out operations.

In 2007 egg production totaled 90.6 billion eggs, down 1 percent from the 91.3 billion eggs produced in 2006. The value of all egg production in 2007 was $6.7 billion, up 51 percent from the $4.43 billion the previous year, largely because of significantly higher prices. 

The top five egg-producing states are Iowa, Ohio, Indiana, Pennsylvania and California. These five states represent approximately 50 percent of all U.S. layers. The American Egg Board provides the following data, from 2007, which shows that the top ten egg-producing states (ranked by number of layers represented in thousands) are as follows:

Eggs are sold as commodities. The USDA provides marketing statistics for various segments of the egg market. One measure is the historical tracking of the number of eggs cracked or broken. That information is then broken down by whole, whites or yolks. Eggs are also measured by frozen and dried forms, as well as by shell.

Industry Consolidation

In 2007, the average number of egg-type laying hens in the U.S. was 344 million. Flock size for July 1, 2006 was 284 million layers, an increase from 281 million layers the previous year. According to the USDA, rate of lay per day on July 1, 2006 averaged 72.7 eggs per 100 layers, up slightly from a year ago.

In the table egg industry, specialized production replaced the general farm flock due to improvements in breeding, feeding, disease control, management and marketing. Technological innovations in the 1950s and 1960s, including automated egg washers, blood spot detectors, and automated egg cartoners, encouraged large-scale production and mechanized handling and distribution of large numbers of eggs.

Egg production has changed to a more vertically integrated system over the last 45 years. The egg industry has exhibited the most dramatic change toward a more vertically integrated system, proportionately more than broiler and turkey production.

According to the American Egg Board, there are presently 64 egg-producing companies with 1 million plus layers and 11 companies with greater than 5 million layers. There are approximately 255 egg-producing companies with flocks of 75,000 hens or more. These companies represent about 95 percent of all layers in the United States. In 1987, there were around 2,500 operations.

Exports

Total egg exports consist of shell eggs for consumption, shell eggs for hatching and egg products for prepared and baked foods. During 2007 exports of U.S. table eggs and egg products increased 24 percent in volume to 251 million dozen. Exports of shell eggs for consumption and for hatching accounted for 138.3 million dozen eggs. The market for U.S. egg products accounted for the remaining 112.6 million dozen eggs.

Much of the growth in egg exports during 2007 can be attributed to shipments going to European Union (EU)-27 countries. The EU-27 countries imported 42 million dozen eggs and were the second largest market for egg exports that year.

Regulations

The Food Safety Inspection Service (FSIS) is responsible for administering a mandatory inspection program for egg products under the authority of the Egg Products Inspection Act of 1970. The Act and its associated regulations require that all commercial egg-breaking and egg-processing plants operate under continuous USDA supervision.

Poultry litter and the associated disposal is also regulated by the Environmental Protection Agency. Groundwater protection issues are important considerations, as are odor and nuisance of poultry production facilities. State and local agencies are also involved with the enforcement of these regulations.

Emerging Developments and Issues to Follow

Egg sales in general have fared well over the last few years, due in part to research on the beneficial nutritional values found in eggs. The cholesterol scare of years past has been replaced by new findings in more recent research. Consumers have responded positively to the functional qualities of eggs, and industry associations are promoting those values. Designer and specialty eggs such as Omega 3 eggs are finding acceptance among the increasingly health-conscious consumer.

Diseases in poultry flocks have caused economic losses, in addition to having harmed international trade. Another disease, Exotic Newcastle Disease (END), produces significant sudden death loss in poultry flocks and involves quarantine procedures. It does not affect humans, and chickens and eggs are safe to eat; however, the disease can spread rapidly and causes extensive flock losses.
 

In additional to diseases, another factor creating uncertainties in the egg industry is the new animal health we