Terrence O'KeefeTerrence O'Keefe is content director at WATT Global Media. www.wattglobalmedia.com/contact-usFrom the Author - Page 2Consumer TrendsEgg consumption provides good newsU.S. egg producers will face some of the biggest challenges they have ever seen over the next 12 months. Uncertainty surrounds just about every aspect of hen housing and welfareFeed Production by RegionHow price elastic is demand for eggs?When economists want to give an example of price inelasticity, eggs are frequently the commodity chosen to demonstrate how changes in price for eggs, either up or down, have relatively little impact on demand for eggs from consumers. The ban on conventional cages for housing layers in the EU that went into affect in January of this year will provide an interesting test case to see just how inelastic demand for eggs really is.Consumer TrendsWill enriched colonies satisfy US consumers?As more U.S. egg producers adopt enriched colony housing it will be necessary for each producer to work to educate the public about the benefits of this type of housing for hens. Efforts like the in-house cameras at JS West, which is viewable via the Internet, need to be replicated at all farms with enriched colony housing. If the U.S. industry does not want to be forced into a completely cage-free future, then all houses need to provide an environment for hens that we are happy to have consumers view at any time.PoultryIs technology good for hen welfare?I left the Executive Conference on the Future of the American Egg Industry, which was held in conjunction with the International Poultry Expo in Atlanta, with more questions than answers. If the U.S. egg industry transitions from conventional cages to enriched colony housing, is it preserving the right to employ technology to continue to increase egg production while minimizing inputs?Consumer TrendsEgg farms: Dealing with the yuck factorThe egg industry needs to be able to look at its own practices and the conditions on its farms, and try to minimize the instances that would make the consumer uncomfortable, even if the consumer isn’t visiting everyday. Integrated pest control programs on farms are important for good farm biosecurity and food safety, but also for good public relations.Feed IngredientsLower feed ingredient prices expected in 2012Back-to-back harvests with below trend line yields for corn have buyers wondering if 2012 will bring any reduction from the record-high average corn price the U.S. experienced in 2011. Poultry and egg producers may get some relief in 2012 as feed ingredient prices fall slightly from 2011 levels—at least that seemed to be the consensus of the presenters at USPOULTRY’s Grain Forecast and Economic Outlook Conference held recently in Atlanta.Business & MarketsGrain prices not the most disruptive challenge for egg producersAnimal welfare issues have the egg industry in the U.S. at a tipping point, and change is coming. How fast and how smooth the transition out of battery cages will be determined by the success or failure of lobbying efforts by UEP and HSUS.Regulatory UpdatesRep. Latham on ethanol lobby: ‘The ethanol debate is over’Most involved in animal agriculture have been hoping to hear the pronouncement that the ethanol lobby had finally lost a vote in Congress, and that day has come at last. Speaking at the United Egg Producers Legislative Board Meeting in Washington, D.C., May 9-11, Rep. Tom Latham, a republican from Iowa, said that “ethanol got creamed” in the last two house votes.Business & MarketsHigh grain prices are here to stayHigh grain prices resulted in losses for the average U.S. egg producer in the first three months of 2011, according to Maro Ibarburu, business analyst, Egg Industry Center, Iowa State University. Ibarburu’s calculations show the egg industry returned to profitability in April due to demand increase associated with Easter, but the industry had negative returns again in May.Previous PagePage 2 of 2
