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Why exporting eggs may not be the silver bullet to boost farm returns
Poultry Industry Calendar of Events
2021
AUG 8-12 – World Poultry Congress, Paris, France www.wpcparis2020. com
AUG 16-18 – World Poultry Science Association (WPSA) – Cambridge, UK www.wpsa2020.org
SEP 1-2 – Poultry Africa 2021 – Kigali, Rwanda www.viv.net/events/poultry- africa-2021-kigali
NOV 21-22 – AVAMS21, Gold Coast www.avams2020.com.au
2022
MAR 30 - APR 1 – 7th International Conference on Poultry Intestinal Health, Columbia, www.ihsig.com
MAY 15-17 – Poultry Information Exchange and Australasian Milling Conference (PIX/AMC), www.pixamc. com.au
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AGRICULTURE is among Australia’s most sustainable and renew- able trade sectors with crops and livestock products generating close to $49 billion in exports last year.
producer does not have the ability to guarantee a long-term continuation of supply, exporting is not a viable or sustain- able strategy.
Because the protocols, costs, biosecurity issues and rules set out by the importing country can take years and a great amount of government money to negotiate.
This figure fluctu- ates according to world events, such as COV- ID-19 and other market factors.
Third, not only do you need to oversee an on- going supply of product, you also need to find a foreign customer who is willing to provide you with a long-term trade contract.
Finally, when it comes to exporting, it is im- portant to understand which nations are com- petitors.
by MELINDA HASHIMOTO CEO
As a result, it is ex- pected to fall below $45 billion by the end of the financial year 2021.
porate analysist firm Sta- tistica, a mix of dairy and eggs account for 11 percent of the world food market.
egg farmer’s answer to generating higher profit margins?
Many farmers get caught out by short-term issues overseas.
World Data Atlas states that China produces the most eggs.
The Federal Depart- ment of Agriculture re- ports that about 70 per- cent of our nation’s agri- culture output is shipped overseas.
There are a number of factors to consider.
A country may seek to import eggs from places such as Australia when their own industry is facing a crisis – as an example, disease out- break – that has tem- porarily halted domestic supply.
In 2019, it provided about 37.8 million tonnes or 43 percent of the world's eggs.
Interestingly, eggs have an important role to play on the global dining ta- ble.
In Australia, over the past five years we have seen eggs added to the list of fresh farm prod- ucts exported by larger egg companies to Hong Kong, Taiwan and New Zealand.
First, it takes a lot of commitment and money before an enterprise can comply with being ‘ex- port ready’.
China – along with the US, India, Indonesia and Brazil – make up the top five egg producing coun- tries, supplying 66.67 percent of eggs world- wide.
According to the cor-
But is exporting an
Second, with the eager- ness to look at markets overseas there comes a sobering warning – if a
But, once that internal problem is overcome, it will suddenly no longer require imported prod- uct.
In 2019, total world egg production was es- timated at 88.1 million tonnes.
According to the corporate analysis firm Statistica, a mix of dairy and eggs
Even if all the ducks –orinthiscasehens– line up, exporting cannot happen overnight.
19 KAA HP Sal CURB 147 x 210mm (new logo) with 3mm bleed.pdf 1
7/23/2019 2:48:29 PM
account for 11 percent of the world food market. Photo: DDP
The result is a sudden disconnection of export trade.
By comparison Aus- tralia is a very small player.
This leads to the prob- lem of an oversupply in the country of origin.
In the 2019 financial year, Australia exported $1.15 million worth of fresh eggs to Hong Kong and $750,000 worth of eggs to New Zealand.
Farmers are then tempt- ed to dump a surplus of cheap product back into the domestic market.
So, why haven’t Aus- tralian farmers exported more eggs?
We are seeing this oc- cur in our egg industry.
It comes down to the simple cost of produc- tion.
The result can be disas- trous for the farmers who cannot afford to reduce their prices to meet those who are dumping eggs on the national market.
Despite our reputation for clean, high quality and safe eggs, it’s hard to compete with foreign competitors that have lower labour and wage costs, lower electricity and transport overheads, and fewer regulatory fees and processes.
There is fourth factor to consider.
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