News

Egg supply rebounding?

With supply returning to more normal levels, prices are expected to drop in Q1.

January 5, 2016

The U.S. egg supply is rebounding well after a tough six months for the egg industry brought on by an unprecedented outbreak of avian influenza, according to the American Egg Board.

A number of factors are at play in the supply rebound beyond affected farms repopulating. Egg imports, fewer exports and unaffected farms increasing production have all contributed to help with the supply gap, John Howeth, executive VP, American Egg Board, said in a press release.

As domestic supply recovers, exports will rise again and imports will eventually taper, bringing the market back to its former balance.

"As we enter 2016, all indicators point toward plenty of eggs and egg products being available for foodservice use," he said. "And barring any further incidents, we expect egg supply and pricing to return to their previous consistency."

Farm repopulation is well underway, according to the The Egg Industry Center in Ames, Iowa, which reported half of layers lost in 2015 are already replaced, and if recovery continues at the current rate, by midyear the flocks should be at or near 100 percent pre-outbreak levels. With supply returning to more normal levels, prices are expected to come down in Q1.