International Egg Market Annual Review

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1 07 International Egg Market Annual Review

2 Global and regional development of egg production TABLE COUNTRY PRODUCTION SHARE (1,000 T) (%) 2006 COUNTRY PRODUCTION SHARE (1,000 T) (%) TABLE 2 COUNTRY CHANGE 1,000 T % The ten leading l China 28, l China 29, Development of France 1, egg producing l USA 5, l USA 5, egg production Spain countries in l India 2, l Japan 2, in the EU (25) UK and 2006 l Japan 2, l India 2, between 2005 Germany (Source: FAO database and ZMP) l Mexico 2, l Russia 2, l Brazil 1, l France 1, l Indonesia l Turkey countries 47, World 64, l Russia 2, l Mexico 2, l Brazil 1, l France l Indonesia l Turkey countries 47, World 65, and 2006, data in 1,000 tonnes (Source: ZMP: Marktbilanz Eier und Gefluegel 2007, p. 102) Italy Netherlands Belgium/Lux Portugal Greece Sweden Austria Denmark Finland Ireland /-0 +/ Other countries Other countries EU (15) 5,688 5, Poland Hungary Czech Rep Slovakia /-0 +/-0 Lithuania /-0 +/-0 Latvia /-0 +/-0 Slovenia /-0 +/-0 Estonia /-0 +/-0 Cyprus Malta 6 6 +/-0 +/-0 EU (10) 1,075 1, EU (25) 6,763 6, TABLE 3 Development of egg production in selected IEC member countries between 2005 and 2006, data in 1,000 tonnes (Source: IEC rapporteurs, FAO database) COUNTRY CHANGE 1,000 T % Argentina Australia Canada Chile* /-0 +/- 0 Colombia 495 * Iran Mexico 2,242 2, New Zealand /-0 +/-0 Norway* /-0 +/-0 South Africa Switzerland 39 * Thailand *384 ** * FAO data ** FAO production volume for Thailand in 2006: 534,661 t 4 INTERNATIONAL EGG COMMISSION ANNUAL REVIEW 2007

3 SUMMARY 1 Summary 1 was prepared and written by Professor Hans- Wilhelm Windhorst IEC Statistical Analyst Professor Windhorst is Director of the Institute for Spatial Analysis and Planning at the University of Vechta, Germany, an institute that he founded in Much of his work involves sectoral patterns in the egg industry. He studied at the University of Muenster and gained a PHD in 1969 and then gained a postdoctoral qualification in long-standing involvement with the IEC and together with Peter van Horne is developing the Economic and Statistical service that the IEC provides to members. investigating regional and Professor Windhorst has had a Global egg production increased from 64,394,000 tonnes in 2005 to 65,500,000 tonnes in 2006 or by 1.7%. The regional concentration, i.e. the contribution of the ten leading countries to the global production volume, decreased from 73.7% to 73.1%. A comparison of the ranking in 2005 and 2006 shows that India changed position with Japan and Russia with Mexico. In India the outbreaks of Avian Influenza resulted in a loss of confidence of the consumers in poultry products and high economic losses of the industry. In the EU (25) egg production decreased from 6.76 million tonnes in 2005 to 6.69 million tonnes in 2006 or by 1,0%. This was, however, not a homogeneous trend, as some countries showed comparatively high decreases (Spain, France, Belgium, United Kingdom) whereas in other countries a moderate growth of the production volume could be observed (Poland, Germany, Netherlands, Italy). The slight decrease has not influenced the self sufficiency rate for the EU (25), however, as parallel to the reduction the per capita consumption of eggs fell from 13.4 to 13.3 kg. Table 2 lists the development of egg production in the EU (15) and EU (10). The data shows that about 16.4% of the overall egg production is contributed by the new member states which joined the EU in Whereas the production volume in the EU (15) decreased by 90,000 tonnes, it increased by 20,000 tonnes in the EU (10). In table 3, data is listed for those IEC member countries which are not covered by tables 1 and 2. Most of the data was reported by the rapporteurs, some was added from the FAO database. The highest increase can be observed in Thailand, Mexico, Argentina, and South Africa. Thailand has quite obviously recovered from the dramatic impacts of the Avian Influenza outbreaks. INTERNATIONAL EGG COMMISSION ANNUAL REVIEW

4 Global and regional development of egg trade TABLE 4 CONTINENT CHANGE 1,000 T % TABLE 6 EXPORTING COUNTRIES COUNTRY EXPORTS SHARE (%) IMPORTING COUNTRIES COUNTRY IMPORTS SHARE (%) Development of global hen egg exports between 2004 and 2005, data in 1,000 tonnes (Source: FAO database) Africa Asia Europe Lat. America & Carib North America Oceania World 1,048 1, Developed countries Developing countries The ten leading egg exporting and egg importing countries in 2005, data in tonnes (Source: FAO database) Netherlands 267, Malaysia 127, Spain 102, Germany 95, China 80, Belgium 75, USA 73, India 58, Poland 48, France 39, countries 970, Germany 273, China 92, Netherlands 88, France 82, Singapore 54, Belgium 42, Canada 39, Un. Kingdom 37, Switzerland 28, Un. Arab Em. 27, countries 767, World 1,166, World 1,124, TABLE 5 Development of global hen egg imports between 2004 and 2005, data in 1,000 tonnes (Source: FAO database) 1000 TONNES AFRICA ASIA EUROPE L. AMERICA N. AMERICA OCEANA & CARIB CONTINENT CHANGE 1,000 T % Africa /-0 +/-0 Asia Europe Lat. America & Carib North America Oceania World 1,006 1, Developed countries Developing countries TABLE 7 The development of shell egg for consumption exports of EU (25) member states between 2004 and 2005, data in tonnes (Source: ZMP Marktbilanz Eier und Gefluegel 2007, p. 106) COUNTRY CHANGE T % Netherlands 264, ,352-10, Germany 93, , , Spain 98,888 98, Belgium/Lux. 70,931 70, Poland 27,203 50, , France 31,024 32,800 +1, Slovakia 2,020 22, ,964 +1,037.8 Lithuania 7,230 10,908 +3, Finland 9,807 9, Italy 5,496 6,699 +1, Czech Rep 5,770 5, Portugal 4,730 4, UK 4,117 4, Austria 3,720 3, Latvia 2,810 3, Sweden 2,342 1, Denmark 1,597 1, Ireland 2,114 1, Greece 3,558 1,402-2, Hungary 1,723 1, Estonia Slovenia Cyprus 0 0 +/-0 +/-0 Malta 0 0 +/-0 +/-0 EU (25) 643, , , INTERNATIONAL EGG COMMISSION ANNUAL REVIEW 2007

5 SUMMARY 1 In order to ensure reliable data for patterns of egg trade, this general summary concentrates on the development of egg trade between 2004 and Between 2004 and 2005 global hen egg exports increased by 119,000 tonnes or 11.4%. Asia and Europe were able to strengthen their market position whereas Africa and Oceania lost market shares. The highest relative growth rates are seen in Latin American and Caribbean countries with an increase of 50 %. The contribution of developing countries to global egg exports increased from 25.4% to 28.7%. In the same time period global egg imports increased by 119,000 tonnes or 11.8%. The highest absolute and relative increase can be observed in Europe, followed by Asia. Import volumes increased considerably faster in developed as opposed to developing countries. The latter had a share of 30.6% of global import volumes. From the data in table 6 one can easily see that the two leading egg exporting countries (Netherlands and Malaysia) contributed about one third to the global export volume in 2005, the ten leading countries 83.1%. It is worth mentioning that Malaysia and Spain were winning over the past years and now rank numbers 2 and 3 in 2005 behind the Netherlands which have been dominating egg exports for years. Germany has been in a similar dominating position as the leading egg importing country for years. It can be expected that this will not change in the near future as the German government decided to prohibit conventional cages from 2009 on, three years earlier than in the other EU member states. It may be surprising at first sight that Germany, the Netherlands, and Belgium are to be found in top positions as well under the leading exporting as importing countries. Even though the Dutch poultry industry has more or less recovered from the Avian Influenza outbreaks and the flock size is even higher than before the outbreaks, the production and trade volumes are still considerably lower. The Dutch egg products industry has been importing large amounts of shell eggs which cannot be marketed for consumption, Germany is one of their major supplier. Table 7 shows the export and import volumes for the EU (25) member states as reported by ZMP. These figures differ considerably from FAO trade data in table 6. For most countries the FAO data is much lower. As the ZMP data is based on national statistics and data published by EUROSTAT, it is used instead of FAO data. INTERNATIONAL EGG COMMISSION ANNUAL REVIEW

6 Global and regional development of egg trade TABLE 8 COUNTRY CHANGE T % TABLE 9 COUNTRY CHANGE T % The development of shell egg for consumption imports of EU (25) member states between 2004 and 2005, data in tonnes (Source: ZMP Marktbilanz Eier und Gefluegel 2007, p. 106) Germany 321, , , Belgium/Lux. 81,288 82,543 +1, Netherlands 80,408 81, France 67,840 78, , UK 36,602 37, Denmark 16,019 21,856 +5, Austria 17,334 17, Czech Rep 10,345 14,428 +4, Hungary 4,243 13,041 +8, Italy 10,575 11, Poland 4,536 10,617 +6, Slovakia 364 6,839 +6,475 +1,778.8 Portugal 3,959 4, Ireland 3,585 4, Development of egg exports of selected IEC member countries between 2004 and 2005, data in tonnes (Source: FAO database) Argentina 852 2,891 +2, Australia Canada 3,331 3, Chile Colombia 2,231 1,098-1, Iran 5,259 2,537-2, Mexico New Zealand Norway South Africa 2, , Switzerland ,100.0 Thailand 3,489 6,960 +3, Sweden 4,902 4, Greece 631 2,506 +1, Estonia 973 2,313 +1, TABLE 10 COUNTRY CHANGE T % Slovenia Latvia Cyprus ,613.0 Spain Lithuania Malta Finland EU (25) 665, , , Development of egg imports of selected IEC member countries between 2004 and 2005, data in tonnes Argentina Australia Canada 52,235 39,877-12, Chile Colombia 275 1, Iran Mexico 5,006 7,340 +2, New Zealand Norway (Source: FAO South Africa database) Switzerland 27,087 28,345 +1, Thailand ,008 tonnes 2004 EU IMPORTS 8 INTERNATIONAL EGG COMMISSION ANNUAL REVIEW 2007

7 SUMMARY 1 Between 2004 and 2005, the EU (25) export volume of shell eggs increased by 62,585 tonnes or 9.7%. The highest absolute increase shows Germany, Poland, and Slovakia, the highest decrease can be observed in the Netherlands, Greece, and Hungary. In the trade data, the intra-eu trade is included. The regional concentration of egg exports in the EU is very high. The two leading countries contributed 53.1% to the total export volume. Between 2004 and 2005, egg imports increased by 75,008 tonnes or 11.3 %. With the exception of Sweden and Malta, the export volume was higher in 2005 than in The highest absolute increase can be observed in Germany, France, and Hungary, but also Slovakia, Poland, and Denmark showed a considerable increase of their import volume. It is worth mentioning that the import volume of shell eggs was higher than the export volume. This is a result of the fact that EU member states not only imported eggs from other EU members but also from third countries, even though their contribution is considerably low. Here, the fact that shell eggs for consumption are generally not transported over a long distances becomes obvious. In egg imports, the regional concentration is also very high. Germany alone had a share of 46.5 % of the import volume, the two leading countries of 57.7 %. FAO data is used to give an overview of the dynamics in those countries which are not covered by tables 6 and 7. In table 9, the development of egg export data in these countries is listed. Thailand and Argentina show a considerable increase of their export volume. Thailand recovered from the Avian Influenza outbreaks (see also table 3) and could therefore gain back market shares. The main results of the production and trade analysis can be summarised as follows: Global egg production increased by 1.1 million tonnes or 1.7 % between 2005 and It was, however, not a homogeneous regional growth. In the EU (25), the production volume decreased by almost 70,000 tonnes, whereas in China and Thailand egg production increased by 800,000 tonnes respectively 239,000 tonnes. Global hen egg exports increased by 119,000 tonnes between 2004 and Whereas Asia and Europe could strengthen their market position, Africa and Oceania lost shares. The highest relative growth rate could be observed in Latin America and the Caribbean, this region, however, contributes less than 2 % to the global export volume. In global hen egg imports, Asia and Europe could also strengthen their positions. These two regions had a share of 90 % of the global import volume. In egg exports as well as in imports, one country, the Netherlands and Germany, are in an unrivalled leading position. The dynamics in egg trade in two consecutive years was remarkable, especially in countries outside the EU. References: FAO database: ZMP (ed.): Marktbilanz 2007: Eier und Gefluegel. Bonn INTERNATIONAL EGG COMMISSION ANNUAL REVIEW

8 IEC comparison of international country data Figure 1. Overview of the percentage of brown and white layers in 30 IEC countries n % White n % Brown AUSTRIA CZECH REP DENMARK FINLAND FRANCE GERMANY GREECE HUNGARY IRELAND ITALY NETHERLANDS SLOVAKIA SPAIN SWEDEN SWITZERLAND UK AUSTRALIA CANADA JAPAN NEW ZEALAND USA 0 ARGENTINA BRAZIL CHINA COLOMBIA INDIA IRAN MEXICO SOUTH AFRICA THAILAND Figure 2. Overview of the percentage of hens housed in cages, barn or free range systems in 30 IEC countries n % Free range n % Barn n % Cage 10 INTERNATIONAL EGG COMMISSION ANNUAL REVIEW 2007

9 SUMMARY 2 Summary 2 was prepared and written by Peter van Horne IEC Economic Analyst Peter van Horne is a senior economist at the LEI Institute of Wageningen University and Research Centre in the Netherlands. He is Europe s projects for government and industry with particular focus on the economics of animal welfare, environmental protection, animal health and international involvement with the IEC and together with Professor Windhorst is developing the Economic and Statistical service that the IEC provides to members. premier Poultry Economist and competition. specialises in poultry research Peter has had a long-standing Introduction Housing systems for layers Based on the 2006 data provided by the rapporteurs (July 2007) a first analysis was made by the IEC. In total data from 30 countries was analyzed. This was done on four indicators: n brown / white ratio n housing systems for layers: cage, barn, free range n self sufficiency rate n consumption eggs / person / year These indicators are given for most countries and have a clear definition. There is no influence by the number of layers in a country, currency or measuring unit. The figures in this report show the differences between the countries. The countries are listed in alphabetical order. However the countries are divided into three groups: n EU countries plus Switzerland (15 countries out of the total 27 EU members in 2007) n Developed countries (5 countries: Australia, Canada, Japan, New Zealand and USA) Figure 2 gives an overview of the percentage of hens housed in cages, barn or free range systems in 30 countries. Figure 2 shows there is wide variation in housing systems. Outside the EU only Australia and New Zealand have some commercial non cage systems. In all other countries farmers mainly work with cage systems. For China, India and South Africa the numbers with non cage housing probably refer to non commercial backyard farming. Also, within the EU there is a wide variation in percentage of hens in non cage systems. Countries with less than half of the hens in cage systems are Austria (30%), Sweden (39%) and the Netherlands (47%). Hens are mainly kept in cages in Spain, Hungary, Italy and Greece. Figure 2 also shows that in some countries the main non cage system is free range production (UK, Ireland, Slovakia, Czech Republic) and in other countries the main non cage system is barn production (Sweden, Finland, the Netherlands). n Rest of the world (9 countries in South and Middle America, Middle East and Asia) Brown / white layer ratio Figure 1 gives an overview of the percentage of brown and white layers in 30 countries. Figure 1 shows that the percentage of brown layers is very variable. In the EU countries of France, Hungary, Ireland and the UK the percentage of brown hens is almost 100. Countries with a low share of brown hens are the Scandinavian countries such as Sweden (5%) and Finland (5%) followed by Denmark (37%). Outside the EU countries, South Africa and Thailand have mainly brown layers. In the USA, Canada, Mexico, India and Iran most layers are white. INTERNATIONAL EGG COMMISSION ANNUAL REVIEW

10 IEC comparison of international country data Figure 3. Overview of the self sufficiency rate in 30 IEC countries n Self sufficiency rate Figure 4. Overview of the egg consumption in 30 IEC countries. n Eggs per person per year 12 INTERNATIONAL EGG COMMISSION ANNUAL REVIEW 2007

11 SUMMARY 2 Self Sufficiency rate Figure 3 gives an overview of the self sufficiency rate in 30 countries. The data is based on the 2006 situation for most countries. However, for some countries the figure is based on the situation in year Data is missing for Hungary, Slovakia and India. Figure 3 shows that almost all countries have a self sufficiency rate of around 100%. Only Canada (98%) and Japan (95%) have some imports. In the EU the main exporting countries are the Netherlands (301%), Spain (117%) and Finland (117%). Importing countries are Germany (71%), Austria (73%), Ireland (80%), Denmark (81%) and Ireland (84%). Egg consumption per person per year Figure 4 gives an overview of the average egg consumption per person per year in 30 countries. Figures 4 shows that egg consumption per person per year in the EU countries is in general in between 170 and 230 eggs. Egg consumption is relatively low in Greece and Finland and high in Hungary, Denmark, France and the Czech Republic. Outside the EU egg consumption is high in Japan, China, Mexico and the USA. INTERNATIONAL EGG COMMISSION ANNUAL REVIEW

12 AROUND THE WORLD IEC has members in nearly 60 countries Algeria Argentina Australia Austria Barbados Belarus Belgium Brazil Bulgaria Canada China Colombia Cyprus Czech Rep Denmark Egypt Estonia Fiji Finland France Germany Greece Guatemala Hungary India Iran Ireland Italy Japan Korea Lebanon Mauritius Mexico Netherlands New Zealand Nigeria Norway Pakistan Philippines Poland Portugal Rep Ireland Russia Singapore Slovakia South Africa Spain Sweden Switzerland Taiwan Thailand Trinidad & Tobego United Kingdom Ukraine United Arab Emirates USA Venezuela ANNUAL REVIEW 2007 EDITORIAL TEAM Director General Julian Madeley Statistical Analyst Professor Hans-Wilhelm Windhorst Event Manager Miss Philippa Jackson Communications Advisor Mike Scott Economic Analyst Peter van Horne Designed and produced by Lighthouse design for business INTERNATIONAL EGG COMMISSION ANNUAL REVIEW

13 The International Egg Commission 89 Charterhouse Street London EC1M 6HR United Kingdom Phone: +44 (0) Fax: +44 (0) Web: The IEC support group We would like to thank the following for their support Interested in joining the IEC support group? The IEC support group provides a unique opportunity to promote your company through IEC publications, the IEC website and through our annual conferences. If you are interested in joining, please contact Philippa Jackson on +44 (0)

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