Debut of cutting edge and healthy egg products in Spain

Under the activities in celebration of World Egg Day, research for the discovery of new egg products went beyond the traditional. In Spain, driven by the Egg Research Institute (Instituto de Estudios del Huevo, IEH), the findings were very surprising.
Dr. Benjamin Paredes of the University of Oviedo used egg yolk as a starting point and fractioned it into two — namely granules and plasma. Granules are basically phosphorylated proteins, while yolk plasma is the fraction of phospholipids and cholesterol.
The egg yolk work and research conducted by Dr. Paredes has provided the basis for the development of mayonnaise, puddings and pastries. But applications go further:

• In jellies, snacks and energy gels
• In cosmetics and creams
• In packaging materials and coatings

Researchers at the University of Oviedo have as future objectives, the search for new applications that give more added value to yolk granules and plasma, for more specific applications, as well as extend the studies of materials that lead to tissue engineering to be used, for example, in implants.
On the opposite end, Dr. Marta Miguel of the Institute of Food Science Research of the CSIC in Madrid, presented the results of practical applications of products obtained from the egg white hydrolysate; providing ingredients with bioactive properties that include health benefits. Dr. Miguel's Biopep research group works with biologically active peptides released from the egg white by chemical hydrolysis. These peptides have biological activities such as anti-cholesterol or anti-viricide. In addition to hydrolysis they apply enzymes, which inactivate at the proper time to avoid unwanted byproducts.
These new egg products are used in meringues, fresh cheeses with a spreadable texture, ice creams, custards and snacks. The idea behind this work is to combine food production with science and health, resulting in tasty and healthy cuisine.
The IEH also offered a tasting session of the various egg products in foods prepared by professional chefs.

Analysis: US egg products market hit hard by avian flu

iStockphoto.com/boule13
To date, 85 percent of the layers lost to avian influenza in Iowa were producing eggs for the breaking or egg products market. 
Minnesota and Iowa are the two U.S. states that have suffered the greatest losses in the current avian influenza outbreak, which is already the most damaging in terms of economic and bird losses in U.S. history. Dr. Thomas Elam, economist and president, FarmEcon LLC, said that as of May 14, 2015, the USDA has reported the loss of 27.5 million egg laying hens to the current outbreak. This represents about 9 percent of the U.S. laying hen flock.
“Most of those were producing the eggs we eat as table eggs and in bakery products,” he said. “But, some were producing eggs for hatching into replacement layers.”


Iowa laying hen losses nearing 50 percent
Iowa has lost at least 22.5 million laying hens, about 7 percent of the total U.S. layering hen flock. Eighty-five percent of the layers lost in Iowa were producing eggs for the breaking or egg products market. The egg products market accounted for around 35 percent of total U.S. egg consumption in 2014.
Elam said: “A little simple math tells you that we have lost about 20 percent of our breaking egg supply. I have personally spoken with a baker that is facing a 33 percent production cut if they can’t replace the egg products used to produce their bread.” Other products using eggs include ice cream, candy and mayonnaise. “We can and will divert retail eggs to breaking operations to supply the egg products industry,” he said.
Diversion of eggs from the retail market to the egg products market happens routinely in times when there is a relative oversupply of eggs for retail needs. The current avian influenza situation may complicate the movement of eggs, at least initially, to breakers if they are located on inline farms that are affected by the outbreak. Once farms that have been depopulated are confirmed to be free of the virus, movement of eggs onto the premises from other farms would likely be allowed.
Elam said that export bans placed on U.S. eggs may help to mitigate the supply situation in the U.S. somewhat. “Exports account for less than 5 percent of egg production (in 2014),” he said. “We will get some of that production diverted to the U.S. market, helping make up some of the losses. It is much too small an amount to make up for all of it. Some companies are starting to look into supply sources outside the U.S., but supplies are limited there as well.”


Record high egg and egg product prices ahead 
Avian influenza is clearly having an impact on prices for both eggs and egg products. Elam said: “Egg and egg product prices are increasing rapidly, and will set new all-time record highs in the weeks and months ahead. Bakery product prices will also be increasing.”
“It will take 18 to 24 months to replace the laying hens we have lost. There are just not enough young layers produced every month to speed that up,” he said. “This is a problem that will be with us for a while, even if it stops today.”
Elam stressed that his analysis is based on current reported losses and scheduled depopulations, and that while the spread of the current outbreak appears to have slowed, it is not over yet.

Whole-egg protein supplement receives patent

R&D LifeSciences LLC has received a patent for its novel liquid whole-egg protein supplement, Protemace Liquid. As a result, Protemace is the only patented whole-egg protein supplement stable at room temperature in a liquid form that can be directly added to drinking water or rations of poultry and livestock. Protemace provides an antibiotic-free, all-natural source of immunoglobulins (IgY) which are critical in supporting the immune system, especially in challenging environments.
The patent for the liquid formulation sets Protemace apart from its competitors. Similar whole-egg supplements on the market are only available as powder formulations, but the liquid Protemace formulation allows administration through water medicators and the preservation of antibodies in the supplement. According to David Zehendner, President/CEO at R&D LifeSciences, "Protemace stabilized liquid technology is superior to other available IgY formulations because egg antibodies are not denatured during the Protemace manufacturing process. Other products are in powdered form due to spray-drying or freeze-drying processes that also inadvertently denature antibodies." This distinction is said to benefit chickens by providing transfer of passive immunity via antibodies contained in Protemace.
Protemace is especially beneficial for production animals during times of stress or transitional periods, as inclusion of egg proteins in specific feeding situations has been shown to help maintain proper digestive function and feed efficiency. The specific IgY antibodies in Protemace help support passive immunity against some major disease pathogens.  The stabilized liquid supplement can be delivered through watering systems, bottles, buckets, and automatic milk feeders, or added to solid feed. Protemace is classified as generally recognized as safe for use in animal feeds.
In addition, a recently completed research study at the University of Arkansas demonstrated the efficacy of Protemace for improving gut health of broiler chickens. The trial involved 1,400 broiler chicks placed for grow-out while receiving several different Protemace regimens via the drinking water. Results indicated that birds given Protemace experienced better gut health as evidenced by significantly increased villus height and crypt depth in the ileum and duodenum compared to non-supplemented controls. In addition, rates of mortality and clostridial isolation were reduced in birds provided Protemace in the drinking water (0 percent Protemace birds Clostridia-positive vs. 77 percent control birds Clostridia-positive).  Findings suggest that Protemace offers a non-antibiotic alternative for improving gut health of commercial broilers when no antibiotics or coccidiostats are administered in the feed.
Results from the research study will be presented by the University of Arkansas at the Symposium on Gut Health, November 11-13, 2013, in Kansas City, Mo., and at the International Poultry Scientific Forum, January 27-28, 2014, in Atlanta, Ga.

Kinnikinnick Foods issues egg allergy alert

Kinnikinnick Foods, Edmonton, AB, is warning consumers with egg allergies not to consume its frozen pie crust because it contains egg products which may not be indicated on an applied ingredient label.
Products without an ingredient label applied to the box are not subject to this recall as they correctly list the product as containing eggs. 

Michael Foods earnings $8.7 million in third quarter 2012

Michael Foods reported net earnings for the third quarter, ended September 29, of $8.7 million, compared to $0.6 million in 2011, according to the company's latest financial report.
The earnings increase resulted from higher volumes, improved margins in 2012 due to better alignment of pricing with input costs, and reduced interest expense of approximately $2.9 million in 2012 compared to 2011 resulting from derivative accounting on interest rate swap contracts, said the company. Egg products in particular increased, doing $13.12 million in business, compared to $10.93 million during the same quarter in 2011.
Net earnings for the nine months were $16.4 million, compared to a net loss of $5 million in 2011. The earnings increase resulted from higher volumes, improved margins, costs of approximately $8 million in 2011 related to refinancing of the company's credit agreement, a reduction in cash interest expense in 2012 due to lower debt levels, and reduced interest expense of approximately $4.8 million in 2012 compared to 2011. Egg products are down so far for the three quarters overall, at $31.38 million compared to $38.44 million in 2011.
“Our third quarter and year-to-date results reflect the success of our key growth initiatives and the strength of our underlying business processes,” said Jim Dwyer, president and CEO of Michael Foods. “Our volume and revenue growth is being driven by new distribution and increased velocity with existing customers. We are also seeing the continued effectiveness of our pass-through pricing mechanisms and continuous improvement programs.”

North America top importer of US broiler, turkey meat

The North America region is the top export destination in the world for U.S. broiler and turkey meat and number three for egg products for the January–April time frame, according to the U.S. Department of Agriculture's latest international report.
Cumulative January–April U.S. broiler meat exports to North America are up 16 percent over 2011 numbers for the same time frame and are at 10-year highs, while total U.S. world broiler meat exports are up 15 percent and are also at 10-year highs. For the January–April time frame North America consumed 21 percent of total 2012 U.S. broiler meat exports compared to 13 percent for the same time frame in 2002.
U.S. cumulative turkey meat exports to North America for January through April are up 15 percent over the same time frame in 2011 and are also at 10-year highs. For the same time frame North America imported 59 percent of all U.S. turkey meat exports compared to 54 percent in 2002.
Total egg product exports from the U.S. to the North America region for January–April are 67 percent higher than the same time frame in 2011; however, it is 32 percent lower than the 10-year high established in 2010 for the same time frame. For the January–April time period the U.S. exported 17 percent of total egg product exports to North America compared to 39 percent in 2002 for the same time period.
The primary broiler meat, turkey meat and egg product export destinations in North America are Canada and Mexico. Mexico was the number one broiler meat and turkey meat destination, while Canada was the number one egg product destination.


For more  poultry and egg information and statistics, see www.wattagnet.com/marketdata.html.  

American Egg Board releases 2009 annual report

In its 2009 annual report, the American Egg Board recorded total revenue of $21.1M in 2009, of which 98% was derived from assessments. Expenditures of $25M resulted in a deficit of $5.1 million. Operating expenses included $12.6M for advertising; $3.1M for nutrition, research and promotion; $2.0M for support of state marketing initiatives; $1.5M for food service promotion; $1.8M for agricultural education; $1.1M for egg product marketing; and $1M for industry programs. Administrative expenses were held to less than 5%.
The annual report highlighted activities under the categories of agricultural education, consumer marketing, food service and egg product marketing, industry programs, and nutrition. The organization’s Good Egg Project made 100 million impressions over the last four months of 2009. Eggs were promoted through The Rachel Ray Show, Sesame Street, The Early Show and various social media channels. Other activities included the annual White House Easter Egg Roll and maintaining the Incredible Edible Egg consumer Web site. Publications such as Readers Digest, Scholastics, Weight Watchers and leading newspapers carried recipes and promotional materials featuring eggs.
Among food service and egg product marketing activities, the American Egg Board concentrated on quick-service retail increasing egg servings by an additional 120 million during 2009. The organization carried out promotions directed at culinary schools and demonstrations at the National Restaurant Association Show and the School Nutrition Associations National Conference, where Howard Helmer mounted omelet demonstrations. Helmer is the Guinness World Record holder for fastest omelet maker.
Nutrition research was restructured with the transfer of the Egg Nutrition Center to the American Egg Board’s headquarters. A number of studies were published in peer-reviewed journals, and informational reports on nutrition were provided to the media. The Egg Ambassadors program secured more than 90 million media impressions during the year directed to professionals in medicine and dietetics.

IEC conference speaks to branding, marketing

At the recent International Egg Commission Conference, Dr. Jan-Benedict Steenkamp shared his views on branding, emphasizing “strong brands don’t just happen; they are created.”
He maintained that branding eggs represents a practical alternative to store-designations since consumers invariably seek out brand names to simplify the purchase process. Since most consumers make a purchase decision within 20 seconds, it is important for brands to be featured on packs. In addition, product attributes including nutritional content should also be clearly visible.
Brand promotions can be extremely effective, providing consumers can appreciate the attributes of the product. Competitive advantages accrue to successful brands despite the costs associated with advertising. Steenkamp maintains brand promotion is most effective in concentrated markets such as the major metropolitan areas of the U.S.
With the supermarket industry representing an oligopoly in the U.S. and the EU, and the inclinations of multinationals toward store brands, producers must be flexible and prepared to sell both generic and premium products to the major chains. At the end of the day, the reality is that supermarkets own their shelves. They are, however, prepared to sell both specialty and store brands in response to consumer demand since customers loyal to a specific brand may fill their weekly baskets at a competing store with broader offerings.
Of special importance to the U.S. industry is the distinction between generic and brand promotion. Steenkamp recognizes the role generic promotion may have in dispelling misconceptions among consumers. A specific example is the work of the American Egg Board in removing the stigma of cholesterol from eggs.

USDA, FAS release egg statistics

According to the latest statistics issued by the USDA Economic Research Service and the Foreign Agricultural Service (FAS), cumulative exports for the first eight months of 2009 amounted to 77.2 million dozen shell eggs.
This represents a 7% increase over the corresponding period in 2008.
On an annualized basis, shell egg exports in 2009 would amount to 115 million dozen, representing the output of five million hens or 1.8% of the national flock. Among the significant importers, Canada declined by 8% to 21.5 million dozen, compensated by a 16% increase in exports of 16.2 million dozen to Hong Kong. Exports to unspecified countries, including the Caribbean, increased by 4% to 25.4 million dozen.
According to USAPEEC, an average of 74 cents per dozen was obtained for shell eggs. Exports of egg products expressed as shell egg equivalents attained 67 million dozen for the first eight months of 2009, which was virtually unchanged from the value in 2008.
Japan reduced imports by 38% to 14 million dozen shell-equivalents, but this was compensated by a 273% increase in exports to Canada (5.3 million shell-equivalents) and a 50% increase to Germany. China showed a significant drop from 3.8 million dozen shell-equivalents to 283,000 dozen. This virtually identical reduction in volume occurred previously between 2005 and the precipitous drop in 2006.Total exports of shell eggs and products expressed as shell-equivalents represent the output of seven million hens or 2.6% of the national flock and constitutes an important market stabilizing factor.

Cal-Maine Foods posts loss for first quarter 2010

Cal-Maine Foods, the nation's largest egg producer, posted a net loss of $3.8 million on sales of $187.7 million for the first quarter of fiscal 2010, ending August 28, 2009. The loss compares to a profit of $11.1 million on sales of $206.9 in the corresponding period of FY 2009.
Net average selling price on 193 million dozen eggs sold was $0.92 compared to 170 million dozen which generated $1.14 in Q1 2009. The 19% decline in unit revenue was responsible for a decrease in gross margin from 19.6% compared to 9.7% in Q1 of 2010. During the quarter, Cal-Maine produced 80.9% (78.3% in Q1 2009) of eggs sold and increased sales of specialty eggs to 22.5% (17.2%) of sales. Feed cost per dozen declined by 22% to 35.7 cents from 45.8 cents in Q1 2009.
Fred Adams, Jr., chairman and CEO, in commenting on results stated, "All factors considered, our results for the first quarter of fiscal 2010 were satisfactory." He added, "All of our operations are running smoothly and efficiently."
The company carries long term debt of $88 million with a LTD:equity ratio of 0.26 (0.34) and a current ratio of 2.2 (2.3) which indicates prudent management of risk.

FDA Salmonella enteritidis regulations finalized

The proposed FDA regulations to reduce the incidence rate of egg-borne Salmonella enteritidis infection among U.S. consumers have now been finalized after many years of drafting, consultation and comment. Dr. Margaret Hamburg, newly appointed as commissioner of the FDA, considers that "the action will prevent thousands of serious illnesses from salmonella in eggs."
Ironically, the regulations, which will require compliance within 12 months for units in excess of 50,000 hens, are largely redundant in the context of current procedures applied by the industry to detect and suppress SE. The USDA projection of 79,000 cases of egg borne SE is speculative and may well be based on extrapolation from questionable epidemiologic data. During the protracted "gestation" of the regulations, the industry has moved forward with egg quality assurance programs, including the UEP Five Star initiative.
All commercial producers follow NPIP procedures in relation to sourcing chicks and monitoring for SE. Rodent control programs have been upgraded on virtually all commercial farms, although problems still exist with high-rise units and with biosecurity in general. The industry has adopted vaccination as a preventive measure to reduce the risk of intestinal colonization and vertical transmission. Maintaining a cold chain from the time of packing through to the point of sale has been the most significant measure in reducing incidence rates of SE. This modality coupled with greater use of pasteurized product for food service and institutional markets and improved education on handling eggs have minimized the risks of transmitting SE through eggs.
The most important addition to the monitoring program mandated by the FDA regulations comprises a mid-cycle assay which is regarded as a significant improvement in detection of infected flocks. The previous approach of monitoring flocks at transfer and then at depletion left an extended period during which flocks might become infected and pass SE through eggs to consumers by the vertical route. One contentious but epidemiologically justifiable requirement is that eggs should be refrigerated at 45 F during storage and transportation "no later than 36 hours after the eggs are laid."
This does not represent any problem for in-line units where daily transfer from houses through packing and refrigerated storage is routine. The problem does arise with off-line units, especially cage-free and organic farms which contract to packers and producers. Eggs are stored in cool rooms at temperature ranging from 50 F to 60 F with collection frequencies of 5 to 7 days. Upgrading farm coolers and ensuring that transport vehicles have functional refrigeration modules will be required in a number of cases, which is to the benefit of consumers and ultimately the image of the industry.
A number of issues must still be resolved including the possible application of PCR technology to detect SE as an alternative to conventional enrichment and culture microbiology. The relative sensitivity and specificity of the two procedures has yet to be accepted by the FDA for environmental samples and egg pools. PCR offers possible benefits for screening flocks with respect to enhanced sensitivity of detection, increased specificity which reduces false positives and expediting results.

Food safety regulations tightened

The Obama administration initiated the overhauling of food safety regulations, which have come under-fire following numerous product recalls. As part of the new regulations, the administration has outlined measures to prevent salmonella from spreading in the U.S., a news report said.
The FDA issued a final rule to reduce the contamination in eggs, which it believes will reduce illnesses related with the consumption of raw or undercooked eggs by 60% and save more than $1 billion per year. The USDA's FSIS said they will also develop new standards to reduce the incidence of salmonella in turkeys and poultry.
The administration's hope is that 90% of poultry establishments will meet the standards of the salmonella verification program by 2010.

Cal-Maine reports drop in second-quarter income

Cal-Maine Foods Inc. reported net income of $27.2 million, or $1.15 per basic share, for the second quarter of fiscal 2009 compared with net income of $40.2 million, or $1.70 per basic share, for the second quarter of fiscal 2008.
The company’s net sales rose 7% to $238.3 million from $223.7 million last year.
"Our financial results reflect good demand for eggs at the retail level but a declining demand for eggs from the institutional and food service sector," said CEO Fred Adams, Jr. "Sales to the egg products industry were weaker, reflecting the slowing economy and credit challenges for the importers of dried and frozen eggs around the world."
However, feed costs were lower than the previous quarter, particularly with corn and soybean meal prices, he said. In the prior quarter, feed costs helped weigh down profit. But, those prices are likely to remain relatively high and volatile over the year ahead, Adams added.