7 Reasons Why Egg Export is a Lucrative Business

Egg export is a booming industry that offers many benefits for entrepreneurs who want to tap into the global demand for eggs. Eggs are one of the most versatile and nutritious foods in the world, and they are consumed by billions of people every day. In this article, we will explore some of the reasons why egg export is a lucrative business and how you can get started.

1. Eggs are in high demand worldwide

According to the Food and Agriculture Organization (FAO), the global production of eggs was 87.8 million tonnes in 2019, and it is expected to grow by 2.1% annually until 2029. The main drivers of this growth are the increasing population, income, urbanization, and dietary preferences in developing countries, especially in Asia and Africa. Eggs are a cheap and accessible source of protein, essential amino acids, vitamins, minerals, and antioxidants for many people, especially in low- and middle-income countries.

2. Eggs have a long shelf life and are easy to transport

Eggs have a natural protective layer called the cuticle that prevents bacteria and moisture from entering the shell. This makes them durable and resistant to spoilage, as long as they are stored at the right temperature and humidity. Eggs can last for several weeks or even months without refrigeration, depending on the climate and storage conditions. This makes them ideal for export, as they can be shipped by sea, air, or land without requiring special equipment or packaging.

3. Eggs have a high profit margin and low production cost

Egg export is a profitable business because eggs have a high value-added potential and a low production cost. The value-added potential refers to the difference between the selling price and the production cost of a product. Eggs have a high value-added potential because they can be sold at a premium price in foreign markets, especially in countries where eggs are scarce or expensive. The production cost of eggs is low because they require minimal inputs such as feed, water, and space. The feed conversion ratio (FCR) of eggs is around 2:1, which means that for every 2 kg of feed consumed by a laying hen, 1 kg of eggs is produced. This is much lower than the FCR of other animal products such as meat or milk.

4. Eggs have a low environmental impact and are sustainable

Egg export is a sustainable business because eggs have a low environmental impact compared to other animal products. Eggs have a low carbon footprint, water footprint, and land use footprint, which means that they emit less greenhouse gases, consume less water, and occupy less land than other animal products per unit of protein. Eggs also have a positive social impact, as they create employment opportunities, improve food security, and enhance nutrition for both producers and consumers.

5. Eggs have a diverse market and can be processed into various products

Egg export is a versatile business because eggs have a diverse market and can be processed into various products. Eggs can be sold as whole eggs or egg products such as liquid eggs, dried eggs, frozen eggs, pasteurized eggs, or cooked eggs. Egg products can be used for various purposes such as baking, cooking, confectionery, cosmetics, pharmaceuticals, animal feed, and biotechnology. Egg products can also be customized to meet the specific needs and preferences of different customers, such as organic eggs, free-range eggs, enriched eggs, or specialty eggs.

6. Eggs have a strong competitive advantage and can benefit from trade agreements

Egg export is a competitive business because eggs have a strong competitive advantage over other animal products in terms of quality, safety, price, and availability. Eggs are subject to strict quality standards and safety regulations that ensure their freshness, hygiene, and traceability. Eggs are also cheaper than other animal products due to their low production cost and high value-added potential. Eggs are also more available than other animal products due to their long shelf life and easy transportability. Egg exporters can benefit from trade agreements that facilitate market access, reduce tariffs, and promote cooperation among trading partners.

7. Eggs have a promising future and can adapt to changing trends

Egg export is a future-oriented business because eggs have a promising future and can adapt to changing trends in the global market. Some of the trends that favor egg export are:

The increasing demand for protein-rich foods due to population growth, income growth, urbanization, and dietary preferences.
The increasing awareness of health benefits of eggs due to scientific research and public education.
The increasing preference for natural and organic foods due to environmental concerns and ethical values.
The increasing innovation in egg production and processing due to technological advancements and consumer feedback.

How to start an egg export business

If you are interested in starting an egg export business, here are some steps that you need to follow:

Conduct market research to identify your target market, customers, competitors, opportunities, challenges, regulations, and requirements.
Develop a business plan to outline your goals, strategies, budget, and resources.
Register your business and obtain the necessary licenses, permits, certificates, and insurance.
Find a reliable supplier or partner who can provide you with quality eggs and egg products at a competitive price and on time.
Establish a distribution channel and logistics system that can deliver your eggs and egg products to your customers safely and efficiently.
Promote your business and build relationships with your customers, suppliers, partners, and authorities.
Monitor your performance and evaluate your results.

Egg Export: A Growing Industry

Eggs are one of the most traded agricultural products in the world, with a total trade value of $4.73 billion in 2021. The global demand for eggs has increased steadily over the years, driven by population growth, income growth, urbanization, and changing dietary preferences. Eggs are a rich source of protein, vitamins, minerals, and antioxidants, and are widely used in food processing, baking, and catering industries.

The United States is the second largest exporter of eggs in the world, after the Netherlands. In 2020, the United States exported $596 million worth of eggs, mainly to Mexico, Canada, South Korea, Hong Kong, and Jamaica. The U.S. egg export industry has benefited from the reopening of the Chinese market in late 2019, after a five-year ban due to political reasons. China is the largest consumer and producer of eggs in the world, but also imports eggs to meet its domestic demand and to diversify its supply sources. In 2020, the U.S. exported $731.9 million worth of broiler products (including chicken paws and leg meat) to China, surpassing the previous record set in 2008.

Challenges and Opportunities for Egg Exporters

Despite the positive outlook for egg exports, there are also some challenges and risks that egg exporters need to overcome. One of the main challenges is the animal health and food safety regulations imposed by different countries, which may vary in terms of standards, procedures, and requirements. For example, some countries may require eggs to be washed, sanitized, graded, labeled, and certified before export, while others may have different quarantine and inspection protocols for imported eggs and egg products. Egg exporters need to comply with these regulations and ensure that their products meet the quality and safety expectations of their customers.

Another challenge is the price volatility and competition in the global egg market. The price of eggs is influenced by various factors, such as supply and demand, production costs, exchange rates, weather conditions, disease outbreaks, trade policies, and consumer preferences. Egg exporters need to monitor these factors and adjust their production and marketing strategies accordingly. They also need to compete with other egg exporters from different countries, who may have lower production costs or better access to certain markets.

To overcome these challenges and seize the opportunities in the global egg market, egg exporters need to adopt innovative and sustainable practices that can enhance their competitiveness and resilience. Some of these practices include:

Adopting modern technologies and equipment that can improve the efficiency and productivity of egg production and processing.
Implementing good animal husbandry and biosecurity practices that can prevent and control diseases and ensure animal welfare.
Developing new products and value-added services that can cater to the diverse needs and preferences of different customers.
Expanding their market reach and diversification by exploring new markets and niches.
Building strong relationships and partnerships with customers, suppliers, distributors, regulators, industry associations, and other stakeholders.

References:

http://oro.open.ac.uk/50473/1/ORO%2050473.pdf

https://ijpam.eu/contents/2012-78-5/8/8.pdf

https://oec.world/en/profile/hs/eggs
https://www.statista.com/statistics/196095/us-total-egg-imports-and-exports-since-2001/
https://oec.world/en/profile/bilateral-product/eggs/reporter/usa

http://www.fao.org/3/ca9699en/CA9699EN.pdf

http://www.fao.org/3/a-i5555e.pdf

http://www.fao.org/3/a-i4320e.pdf

http://www.fao.org/3/a-i3531e.pdf

http://www.fao.org/3/i3014e/i3014e.pdf