Eggs Profile
By Marsha Laux, content specialist, AgMRC, Iowa State University, mlaux@iastate.edu.
Updated February 2011 by Diane Huntrods, AgMRC, Iowa State University.
Background
The egg industry is one that has changed over the years from many smaller producers to one that is highly centralized and more specialized. In the early years of American agriculture, many farmers had chickens and collected eggs for their own use or for sale to friends, neighbors and the local grocer. Today, layers are not found on many farms but are found in larger numbers on fewer farms.
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 337 million laying birds in the United States in 2009 produced an average of 268 eggs a year (NASS 2010).
Demand
Demand is driven by consumer consumption. Per capita, or per person, consumption is a measure of total egg production divided by the total population.
| Year | Per Capita Consumption |
| 2000 | 251.7 |
| 2005 | 255.4 |
| 2010 | 246.3 |
The per capita egg consumption figures illustrate a slightly higher per capita consumption from 2000 to 2005. By 2010, however, per person egg consumption had declined.
The high point for per capita egg consumption was 402 eggs in 1945. Per capita consumption had been steadily declining due to lifestyle changes and to health concerns. Per capita consumption reached the lowest in 1991.
Of the estimated 215.7 million cases of shell eggs produced in 2009:
- 124.6 million cases (57.8%) went to retail.
- 66.4 million cases (30.8%) were further processed (for foodservice, manufacturing, retail and export).
- 18.3 million cases (8.5%) went for foodservice use.
- 6.4 million cases (3%) were exported. (American Egg Board)
The growth in egg consumption over the past decade occurred primarily in egg products, rather than in shell eggs. The following table helps to illustrate the change in the way consumers are using eggs.
Eggs: In-shell, processed and total farm weight, number per capita per year.
| Year | In-Shell | Processed | Total eggs |
| 1975 | 245.4 | 30.6 | 276.0 |
| 2007 | 169.8 | 79.0 | 248.8 |
In 1997 table eggs were $0.81 per dozen for cartoned grade A large eggs in the New York area; by 2002 eggs were down to $0.67 per dozen. However, egg prices began increasing in following years. In 2009, the price of all eggs averaged $0.82 per dozen, while the price of table eggs averaged $0.66 (NASS 2010). According to the ERS (2011), table egg prices averaged just over $1.06 per dozen in 2010, up 3 percent from the previous year. Since egg production is forecast to rise but egg exports to decline, table egg prices are expected to average $0.98 to $1.04 per dozen in 2011.
Drivers of Demand
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 3 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.
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. In 2010, the number of eggs sold as table eggs totaled 78.2 billion eggs. 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 2010 egg production totaled 91.1 billion eggs, up from the 90.4 billion eggs produced in 2009. The value of all egg production in 2009 was $6.2 billion, down 25 percent from the $8.2 billion the previous year (NASS 2010).
The top five egg-producing states are Iowa, Ohio, Pennsylvania, Indiana and California. These five states produce approximately 45 percent of all U.S. eggs. According to the National Ag Statistics Service (NASS 2010), the number of eggs produced by these states in 2009 (in millions) was as follows:
| States | Eggs (in millions) |
| Iowa | 14,475 |
| Ohio | 7,392 |
| Pennsylvania | 6,509 |
| Indiana | 6,460 |
| California | 5,304 |
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
The average number of egg-type laying hens in the United States during 2009 was 337 million, down 1 percent from the previous year (NASS 2010). Flock size for December 1, 2010 was 283 million layers, up from 282 million layers in 2009. The rate of lay per day on December 1, 2010 averaged 74.9 eggs per 100 layers, up slightly from a year ago. (American Egg Board)
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 56 egg-producing companies with 1 million plus layers and 12 companies with greater than 5 million layers. There are approximately 178 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
Egg exports consist of eggs for consumption, eggs for hatching and egg products for prepared and baked foods. During 2010 exports of U.S. eggs and egg products increased 7 percent to 258 million dozen (ERS 2011). The top five markets were (in order): Canada, Japan, Germany, Mexico and Hong Kong. Canada was the largest market, by far, purchasing eggs and egg products valued at $74.3 million. (FAS)
Rising demand from Asian and European countries, especially Hong Kong and Japan, more than offset a decline in egg and egg product exports to Canada and Mexico. Egg exports to Hong Kong, the top market for U.S. table eggs, rose 17.1 percent; exports to Japan, the single largest importing country for U.S. egg products, increased 10.8 percent. (ERS 2011)
Total egg exports are expected to decline by 4 percent in 2011 to 247 million dozen (ERS 2011).
Imports
Canada was the source of 90 percent of the eggs and egg products imported into the United States in 2010. The total value of those imports was $39.9 million. (FAS)
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
Despite several factors having a negative impact on the egg industry, increasing population and rising per capita consumption have enabled the industry to expand.
Because of increased attention on consumer health, on environmental concerns and in issues from the animal welfare groups, designer and specialty eggs are niches in the egg market worth examining. Organic eggs, range eggs, cage-free eggs and omega 3 eggs are some examples of niches that are of interest and have experienced growth in the marketplace.
Additionally, convenience is an important factor when consumers make food purchases. The trend to eat more prepared and processed foods and the trend to eat more meals away from home is a trend to monitor in the food industry. The use of eggs in processed and prepared food items is expected to experience continued growth.
Sources
American Egg Board
Chickens and Eggs Annual Summary, National Ag Statistics Service (NASS), USDA, 2010.
Eggs, Food Availability (Per Capita) Data System, Economic Research Service (ERS), USDA.
Eggs and Egg Products, Global Ag Trade System (GATS), Foreign Ag Service, USDA.
Livestock, Dairy, and Poultry Outlook, ERS, USDA.
Livestock, Dairy, and Poultry Outlook: Tables, ERS, USDA.
Poultry Production and Value 2010 Summary, NASS, USDA, 2010.
Profile created September 2004 and updated February 2011.
