EGGS MARKETS

AMERICAS: As the size of flocks increase, consumption declines.

Before WWII the majority of egg producers in the USA had flocks of less than 400 hens. Technological developments in the 1960s predicated the shift to large commercial farms.

There are presently 64 companies with more than a million layers and 11 with more than 5 million

Per capita egg consumption peaked at 405 in 1945, nearly 60% higher than current levels. The industry believes the explanation for the decline lies in life style changes and health concerns.

DAIRY PRODUCTS

EUROPE: Rising global milk price has varied causes and effects.

The benchmark price for skimmed milk powder in the UK has risen by 60% in the last six months. The reasons behind this increase are manifold and include factors such as the price of milk falling below the cost of production in the UK resulting in a 50% decline in the number of dairy farmers over the past ten years; severe draught in Australia impacting production and rising demand from China where consumption is predicted to further expand by 15% for the next three years.

The effect of these price rises feeds through not only into the market for pure dairy products such as milk, cheese and butter but also to products which incorporate them e.g. chocolate, cakes and pizzas.

DAIRY PRODUCTS

AMERICAS: The US dairy trade deficit widens to more than $1 billion.

US dairy imports and exports rose to record levels in 2005 whilst the trade deficit widened to more than $1bn. The growth in exports was driven by strong global demand for skimmed milk products; the US was the only significant exporter with surplus stocks. The value of cheese imported increased 3.7% to $1,006m, more than three-quarters of which originated in Europe. The growth in artisanal cheese making, especially in key dairy states such as Wisconsin, is further evidence of growing demand for quality products in this sector.