The dynamics of the U.S. egg industry between 2010 and 2020

In 2019, the USA contributed 7.6% to the global egg production volume and ranked in second place behind China, which shared 37.5%, and before India with a contribution of 6.5%. In global egg exports, the USA ranked in fourth place behind the Netherlands, Turkey and Poland with a share of 8.1%.

Over the past ten years, the U.S. egg industry showed a remarkable dynamics. In 2015, it was affected by massive outbreaks of the Avian Influenza virus in several states of the upper Midwest, which resulted in regional shifts of production. In the past decade, the transformation of housing systems for laying hens from conventional cages to cage-free systems gained in importance. In this analysis, the dynamics and changing patterns of laying hen husbandry and egg production will be analysed.

Considerable dynamics in layer flock and egg production development

Between 2010 and 2019, the total number of laying hens increased from 343.1 mill. to 403.4 mill. or by 17.6%, but decreased to 391.8 mill. in 2020. Table 1 documents the impacts of the Avian Influenza outbreaks in 2015 and the recovery in the following year. Table egg layers share about 80% of the total layer flock, 20% are breeding herds or layer flocks for the production of hatching eggs. The data in Table 1 also reveal the sharp reduction of the table egg layers in 2015.

Egg production reflects the dynamics in the layer flocks (Table 2). The data shows that the production volume fluctuated considerably. Nevertheless, already in 2016 the production volume of 2014 was surpassed. Between 2014 and 2015 table egg production fell from 86,971 mill. to 83,882 mill. eggs or by 3.5%. Despite the loss of more than 40 mill. layers, table egg production recovered very fast and reached 88,405 million eggs in 2016. A more detailed analysis at state level will show that this was only possible because of remarkable regional shifts in the table egg layer flocks.

The transformation of housing systems

In 2008, California decided in a ballot to prohibit conventional cages in laying hen husbandry from January 1 st , 2015 on. Based on this decision, the United Egg Producers organisation in 2011 started an initiative to transform the housing system in co-operation with the Humane Society of the United States in order to meet the expected demand of cage-free eggs. It was estimated that in 2025 37.1 billion eggs would be requested from food retail, restaurants etc. and that 138 mill. table egg layers or almost 48% of the table egg laying hen flock would be needed to produce them.

In 2011, however, only about 5% of the table egg layers were housed in alternative systems. When it became obvious that also other states would follow California in prohibiting conventional cages, leading egg companies began to either convert their housing systems to aviary or barn systems or to build new farms which met the legal regulations of the states, especially California, which was a major market not only for egg companies at the west coast.

In 2015, 24.4 mill. hens were housed in cage-free systems which equalled 8.7% of the total table egg layer flock. From then on, large complexes with aviary systems were built in Texas (Photo 1 and 2), Arizona, California and several other states. From 2016 to 2020, the table egg laying flock increased from 37.6 mill. to 77.1 mill. hens and reached a share of 25.3%.

Between January 2019 and February 2021, 16 mill. new layer places were installed. If this growth rate would be continued, 137 mill. cage-free hens or about 40% of the table egg layer flock would be reached in 2025. It is predicted that in 2030 35% of the table egg layers will still be housed in conventional cages, 58% in cage-free systems and 7% in free range farms (O’Keefe 2020).

The leading egg companies built new housing for 10.85 mill. hens in 2020, of these 4.35 mill. were still conventional cage systems, 2.63 mill. cage-free systems and 3.87 mill. cage-free with outdoor access. They also reported, according to the WATTPoultry survey, that they planned to build houses for another 9.22 mill. hens in 2021, of which 7.84 would be cage-free.

Human consumption and utilisation of eggs

The USA is one of the countries with the highest per capita egg consumption. Between 2010 and 2020 it increased from 249 to 288 eggs (Figure 1). Only in Columbia, Russia, Japan and Mexico the average consumption was higher, with Mexico in a top position, consuming 367 eggs per person and year.

Of the eggs which were produced in the USA in 2019, 60.1% was retail shell eggs, 30.1% was further processed, 7.0% was used by food service and 2.8% was exported (Figure 2).

The changing regional pattern

Between 2010 and 2020, the number of table egg layers in flocks with 30,000 hens and above increased from 280.5 to 310.5 mill. birds or by 10.6%. This was not a continuous increase, as the Avian Influenza outbreaks in 2015 caused a tremendous loss of laying hens in the most-affected states Iowa, Minnesota and Nebraska. The shortage of shell eggs for retail and for further processing caused a steep increase of the laying hen flocks in several other states, in particular in Ohio and Indiana (Table 3).

The data shows that the number of table egg layers in Iowa decreased by 19.5 mill., in Minnesota by 2.1 mill. and in Nebraska 2.0 mill. birds (Windhorst 2015). Even though the egg farmers and integrated egg companies began to repopulate their farms as soon as this was permitted by the administration, the layer flocks in the three states were still considerably lower in 2016 and even in 2020.

The states, which mainly profited from the egg shortage and the fast increasing retail price were Ohio, Indiana and Pennsylvania. Between 2014 and 2015, the table egg layer flocks in Indiana grew by 2.8 mill. hens, in Ohio by 2 mill. hens and in Pennsylvania by 0.4 mill. hens. The three states could fasten their position in the following years (Table 4).

A comparison of the composition and ranking of the ten leading states in 2010 and 2020 reveals some interesting changes. In 2020, Minnesota, Florida and Nebraska no longer belonged to the ten leading states, they were replaced by Georgia, Missouri and North Carolina. Iowa lost 3.6% of its share in 2010, California 2.4%. On the other hand, Indiana gained 2.7%, Ohio 0.8% and Pennsylvania 0.6%. The regional concentration fell from 71.2% in 2010 to 68.4% in 2020. The decrease was mainly a result of the declining layer flocks in Iowa and California.

It is worth noting that the U.S. table egg layer flock decreased from 324.8 mill. in 2019 to 310.5 mill. hens in 2020 or by 4.4%. The Covid-19 pandemic caused considerable disruptions in the egg industry. A fast growing demand because of higher purchases by the consumers resulted in rising egg prices and a temporary shortage of shell eggs. A survey of WATTPoultry (O’Keefe 2021) reveals that the USDA obviously underestimated the table egg layer flock by about 20 mill. hens.

Summary and perspectives

Over the past ten years, the egg industry of the USA showed a very dynamical development. The total layer flock increased by 70 mill. hens, the table egg layer flock by 45 mill. hens or 15.9%. It was no continuous growth as the Avian Influenza outbreaks in 2015 led to a drastic decline of the number of hens and of egg production. In the meantime, flock size and egg production have recovered from the blow, even though in 2020 the Covid-19 pandemic caused a considerable disruption in the egg industry.

The transformation of housing systems from conventional cages to alternative systems is in progress, but the majority of the table egg layers was still housed in cages in 2020. It is estimated that not before 2027 alternative systems will surpass conventional cages. Even in 2030 about 35% will still be housed in the old system. The eggs produced in conventional cages will be mainly utilised for further processing.

It will be of interest to follow the development of the per capita consumption. With 288 eggs per year in 2020, the USA ranked among the countries with the highest consumption. If the dynamical development will continue in the coming years, is difficult to predict.

Data sources and references

Ibarburo, M. (US Egg Industry Center): U.S. Flock Trends and Projections (various reports).

O’Keefe, T.: Additional cage-free hens increase total US hen flock. https://www.wattagnet.com/articles/39470-additional-cage-free-hens-increase-total-us-hen-flock?

O’Keefe, T.: Ranking the largest US egg-producing companies in 2021. https://www.wattagnet.com/articles/41905-ranking-the-largest-us-egg-producing-companies-in-2021.

USDA, NASS: Chicken and Eggs Annual (various editions).

Windhorst, H.-W.: Avian Influenza outbreaks in Iowa layer farms and their economic impacts. In: Zootecnica international 37 (2015), no. 12, p. 28-35.