January 30, 2007

EU demand for US hatching eggs up as corn prices increase

Demand for US hatching eggs has risen as the EU chicken industry may have figured that buying the higher-priced US eggs would be cheaper than buying expensive corn to feed their laying hens.

Although costs have probably gone up about US$0.25 per dozen eggs recently, customers have accepted it, said Dave Neff, Morris Hatchery Inc. director at the International Poultry Conference.

Florida-based Morris Hatchery sells most of its eggs overseas and Neff noted that demand in Europe has increased despite higher prices.

Corn, is now trading at more than US$4 per bushel at the Chicago Board of Trade, the highest in 10 years.

Consumers can expect to pay higher prices for chicken if corn prices remain high, as producers would have to pass on their costs, analysts said.