Egg Market Update – June 2024

Egg Market Update – June 2024

The market for egg products, which has been experiencing wide spread volatility since 2022, is again seeing instability. Supply & demand dynamics coupled with ongoing HPAI outbreaks in various states have led to rising prices in the egg market. There are several factors that are impacting the current price of bulk eggs.

Market Factors

Decline in Egg Layers due to HPAI

Lower Flock and Production Output Forecasts

Supply & Demand Dynamics

The H5N1 virus continues to significantly impact the poultry industry, leading to a decline in the number of egg-laying hens. As of May 1st, the number of layers has decreased to 305.3 million, following a downward revision by the USDA of the previous month’s total by 3.5 million, to 309.3 million. This results in a two-month loss of 5.9 million layers. Of particular concern, the combined effect of additional virus outbreaks in May and a barn fire resulted in the loss of an additional 6.8 million layers, likely reducing the total number of layers to below 300 million.

Despite these challenges, the number of egg-type chicks hatched in April saw a slight increase of 1.9% compared to March and a 2.7% rise from the previous year. However, the number of eggs in incubators as of May 1st decreased by 1.2 million compared to both the previous month and the prior year. The number of egg-type pullets saw a substantial increase of 25.8% in April compared to the previous month and a 6.4% increase from the previous year. The number of cage-free layers stood at 122 million for May, consistent with January’s figures, representing approximately 40% of the total flock.

After a roughly five-week period without new incidents, two additional outbreaks occurred at laying facilities in the last week of May, resulting in a loss of 5.6 million layers. The most significant outbreak affected 4.2 million birds at a farm in Iowa, marking the first commercial outbreak in the states since December. The total loss of commercial layers since the initial H5N1 outbreak in March 2022 now stands at 70.9 million, with 39% of these losses occurring since November 2023.

What This Means for Egg Users

American International Foods, Inc. Logo - SmallSufficient inventories are currently available. However, the continuing strain on the market caused by the bird flu has led to spikes in pricing. As the market heads into the summer months of July & August, it is expected that prices will remain high with steady demand. American International Foods, Inc. can support your egg requirements and help secure product in volatile markets, with several egg options available to fit your specific needs, including dried eggs, frozen eggs, and liquid eggs. We ensure our ingredients are sourced responsibly and meet all the requirements set for quality & safety, each with complete documentation to verify.

Egg Distributor & Supplier Information

For questions regarding egg pricing and availability, please fill out the price request form linked below. For complete technical specifications and other inquiries regarding eggs, please contact one of our sales representatives.

Contact A Sales Rep Price Request Form