U.S. producer data collected in 2021 estimated that processing, cartoning and transportation (PCT) costs for eggs sourced inline averaged approximately US$0.47 per dozen. In 2020, estimated PCT costs for eggs sourced inline was $US0.37 per dozen.
In the last year, PCT costs to produce inline eggs in the U.S. has increased approximately 20%, according to a study published by The Egg Industry Center at Iowa State University.
Other key findings in the study include:
- Most costs are higher than those estimated in the previous report for 2020
- The largest difference compared to 2020’s study is the processing cost
- The estimated cost of transporting eggs 400 miles is similar to the cost estimated for the same distance using the United States Department of Agriculture’s (USDA) refrigerated truck rates
The study defines processing cost as the cost of washing and weighing eggs, as well as the grade yield loss. Grade yield loss is defined as the sum of the losses for all eggs received that are of lower value, such as smaller sizes or undergrades, and the gain for the eggs received that are of higher value, such as larger size eggs.
About the study
Understanding the input costs that U.S. egg producers face is more important now than ever due the variables affecting these inputs including COVID-19, supply chain issues, labor shortages and avian influenza.
To examine this financial shift, The Egg Industry Center published an updated PCT study to help egg farmers compare industry costs with their personal operational costs. The report uses data collected from egg farmers in 2021 to estimate current PCT and input costs, as well as compare the data to 2020’s PCT report.
Responses were received from 18 U.S. companies who collectively process eggs from approximately 74 million layers. The survey sent to producers contained questions about egg type, packaging type, case type, cost of materials, processing and other factors that could influence cost. The study estimates that the survey responses represent roughly 23% of the U.S. layer hen inventory.
