The United States is struggling to import eggs due to a severe shortage driven by a bird flu outbreak. Officials are seeking supplies from countries like Poland, France, and Indonesia. The complexities of shipping and differing trade regulations hinder rapid imports. The U.S. needs up to 100 million eggs in the near future to address shortages and stabilize prices, yet only a small fraction of the global egg market is available for trade.
The United States is facing significant challenges in importing eggs to address a critical shortage attributed to a severe bird flu outbreak. Consequently, local producers must adapt quickly to meet the demand. As grocery stores impose purchase limits and restaurants introduce surcharges, officials from the U.S. are reaching out to international poultry trade groups, including those in Poland, France, and Indonesia, to procure necessary supplies.
A staggering need for 70 to 100 million eggs is anticipated within the next couple of months. This situation arises from the worst bird flu epidemic in history, which decimated hen populations and led to a doubling of retail egg prices. President Trump has labeled the egg market as a “disaster,” showcasing the urgency of stabilizing supply and price.
However, importing eggs poses inherent difficulties due to their short shelf life and fragility. Compounding the issue, exporting countries may not have sufficient stockpiles due to their own ongoing bird flu problems or limited production capabilities. Thomas Bartlett of France’s SNIPO noted that there is inadequate supply in Europe, despite inquiries from U.S. authorities.
The European Union is also experiencing high wholesale prices, with bird flu outbreaks contributing to shortages. Even if foreign supplies can be made available, the feasibility of shipping intact eggs may be questionable, prompting some nations to consider exporting processed egg products instead. Poland’s poultry producers indicated limited opportunities for shipping whole eggs, but could offer substantial quantities of processed products.
Trade complexities, such as differing handling and washing standards and the requirement of import permits, could further hinder the importation process. The reinstatement of import licenses for Dutch egg products by the U.S. reflects ongoing discussions about regulatory practices in that country, while Indonesia is also exploring potential shipments of processed eggs, estimating they could export 1.6 million eggs per month without compromising domestic needs.
Countries are acting judiciously, aware that eggs are a vital dietary component globally. Turkey, which plans to export eggs to the U.S., has imposed an export tax to stabilize local prices amid its struggles with avian influenza. Given the market’s intricacies, Rabobank’s Nan-Dirk Mulder emphasized that the egg market is largely local, with only three percent entering global trade, making rapid adjustments infeasible.
The United States is grappling with a conspicuous egg shortage caused by a devastating bird flu outbreak, prompting a search for international imports. However, significant barriers such as transport difficulties, health regulations, and trade requirements have complicated the process. As the U.S. investigates potential stock from various nations, it faces the reality that the egg market is primarily localized, and rebalancing supply quickly remains a daunting challenge.
Original Source: financialpost.com
