EIC releases study associated with egg production prices

The cost of washing, weighing, packaging and transporting eggs has increased 80 percent during the past 18 years.

(Terrence O'Keefe)
(Terrence O'Keefe)

The U.S. egg production industry has a very small profit margin, so in order to help farmers better understand their expenses the Egg Industry Center (EIC) at Iowa State University, has released a study that seeks to fill an 18-year-old gap in information important to the U.S. egg industry.

The last survey was done in 2000 by Don Bell at the University of California-Davis. However, his work only covered California eggs and their cost of production.

The study is intended to help egg farmers analyze their costs of washing, weighing, packaging and transporting their eggs, a press release from EIC, located in Ames, Iowa, said. The study is referred to as the processing, cartoning and transportation, or PCT study.

Results

Maro Ibarburu, associate scientist and business analyst for the EIC said, “The results tell us that egg farmers typically spend 43-49 cents for every dozen eggs on these costs.”

Ibarburu explained that the data EIC collected from late 2018 shows that the cost of processing, cartoning and transportation has increased 80 percent in the last 18 years. ““While that may seem like a lot, given the changes in regulations and regular inflation, a cumulative 3.3 percent per year is not unreasonable,” he said.

Packing cost varied on types of packaging materials and their associated cost. Finishing cost included the use of pallets, shrink wrap and slip sheets. Transportation cost to deliver eggs to the store varied on respondents assumptions about distance, gasoline prices and freight rates.

This study did not include loss from store returns. EIC intends to update its findings annually or twice a year moving forward.

“EIC is happy to help arm today’s egg farmers with current, scientifically-based information to help them advance their operations,” Ibarburu said.

See the full report.

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