2016 UEP Annual Board Meeting & Executive Conference

Jennifer Porter, Director

Livestock, Poultry, and Seed Program

Quality Assessment Division

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AMS Grading & Certification

www.ams.usda.gov has info including: 

Exports / Imports

USDA Purchase information

Standards  / Regulations

Label Approvals (shielded)

FY 2014 - 1,107

FY 2015 - 1,962 (year of CA Compliant change)

FY 2016 – 1,118 

GMO, Antibiotics, CASEFS, Cage-Free, Pastured

FDA Nutritional Fact Panel changes: formats on Egg Nutrition Center website.

Retail Surveys – Assess product quality/appearance on shelf

Exports: (table eggs and breaking stock)

Jan 2015 – Dec 2015	2,651,967 / 30 dz. Cases

3% of total eggs graded

Imports: Back to normal.	

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AMS Grading & Certification

Finding ways to accommodate high-volume processing machines

USDA Grader and company’s QAI Inspector work as a team 

Revised USDA Sampling Rate

Implemented nationally on September 25.

Revised from 1 sample per 75 30-doz cases to 1 per 100 30-dozen cases. 

Statistically sound, maintains integrity of grademark.

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AMS Biosecurity		

Continued biosecurity vigilance, training and protocols for all QAD field staff 

Company-specific requirements: work with company food safety teams

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| USDA Foods Purchases |             |                   |             |                   |             |                   |             |                   |  |
|----------------------|-------------|-------------------|-------------|-------------------|-------------|-------------------|-------------|-------------------|--|
|                      | FY 2016     |                   | FY 2015     |                   | FY 2014     |                   | FY 2013     |                   |  |
|                      | Cost        | Pounds/15dz Cases | Cost        | Pounds/15dz Cases | Cost        | Pounds/15dz Cases | Cost        | Pounds/15dz Cases |  |
| Shell Eggs           | $10,794,209 | 853,500 cs.       | $4,640,085  | 193,500 cs.       | $4,184,100  | 237,000 cs.       | $2,891,490  | 190,500 cs.       |  |
| DriedEgg Mix         | $7,418,873  | 1,152,000         | $5,659,545  | 864,000           | $2,890,765  | 720,000           | $3,517,927  | 972,000           |  |
| Whole EggCartons 5#  | $3,990,450  | 5,402,700         | $6,915,148  | 2,841,420         | $3,371,833  | 2,841,420         | $4,341,974  | 4,242,120         |  |
| Whole EggBulkTanker  | $9,569,827  | 15,640,000        | $2,175,696  | 3,072,000         | $8,888,282  | 9,072,000         | $9,845,064  | 13,440,000        |  |
| TOTALS               | $34,206,403 | 45,054,450        | $19,379,569 | 11,131,170        | $19,790,965 | 16,987,170        | $20,596,455 | 22,940,370        |  |
|                      |             |                   |             |                   |             |                   |             |                   |  |

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USDA Foods Purchases

FY 16 Totals Include Section 32 Surplus (BONUS) Purchases:

Whole Egg: $3.2 M for 5 million lbs.

Shell Eggs: $8.0 M for 643,500 dz. cases 

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U.S. Cage-Free Stats

As of April, est. 16.6 million cage-free 

	hens (non-organic):

Producing an est. 4.5 billion eggs/year 

Representing 6.0% of the total non-

	organic table egg layer flock (276 million 

	hens based on NASS 2015 annual data) 

The 2026 commitments require approx. 214 million hens:

Shortage = 197 million hens over next 10 years

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| Combined Estimated Cage-Free Requirements by Sector |                               |                |             |                    |
|-----------------------------------------------------|-------------------------------|----------------|-------------|--------------------|
| Food Category                                       |                               | Annual Eggs    | Hens Needed | % of Current Flock |
| 1                                                   | Foodservice (16)              | 3,511,000,000  | 13,000,000  | 4.5%               |
| 2                                                   | Hospitality & Travel (10) | 199,000,000    | 740,000     | 0.3%               |
| 3                                                   | Food Manufacturers (13)       | 2,170,000,000  | 8,000,000   | 2.8%               |
| 4                                                   | Convenience & Drug (8)    | 555,700,000    | 2,100,000   | 0.7%               |
| 5                                                   | Dollar/Variety (2)            | 570,000,000    | 2,100,000   | 0.7%               |
| 6                                                   | Restaurants (50)              | 7,569,000,000  | 28,000,000  | 9.7%               |
| 7                                                   | Grocery (83)                  | 43,220,000,000 | 159,900,000 | 55.5%              |
|                                                     | Totals:                       | 57,795,700,000 | 213,840,000 | 74.2%              |

Source:  USDA, AMS, LPS Agricultural Analytics (estimated)(figures are rounded)

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U.S. Cage-Free Transition

September 21 Meeting with Secretary Vilsack

USDA to assist with several major challenges:

Definition of “Cage-Free”

Industry-led, AMS facilitated

Economic Study

Focus on real-world impact of transition

Education and Consumer Information

USDA communications to address cage-free production, once definition is established

USDA Cage Free Verification Service

AMS continues to provide under voluntary service

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Market News

Weekly average for national FOB graded 

	loose Lg. eggs (9/30/16) was 25.56 cents/dz.  

This compares to 176.82 cents/dz. for the

	same week in 2015.

www.ams.usda.gov/mnreports/pydseindex.pdf

Weekly Organic Poultry and Egg Report with:

www.ams.usda.gov/mnreports/pyworganic.pdf

New Cage-Free Shell Egg Report:

www.ams.usda.gov/mnreports/pymcagefree.pdf

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Jennifer Porter, Director

Livestock, Poultry, and Seed Program

Quality Assessment Division

Jennifer.Porter@ams.usda.gov 		202-690-3147

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