—Lancaster Farming, Saturday, October 23,1971
12
Higher Chick Hatch Helps Egg Market
The number of eggs produced
in the nation continues to average
above the same period a year
earlier, according to a recent
report by Penn State University
and the USDA.
In August there were nearly 316
million layers on farms, about
the same number as a year
earlier. But eggs produced per
layer continued to average above
a year earlier. Production in
August averaged between one
and two per cent more than a
year earlier.
One of the factors which con
tributed to weakness in market
egg prices earlier this year was
the reduction in numbers of
chicks hatched for laying flock
replacements and meat
production. Thus, fewer eggs
used for hatching meant more
eggs available for the table egg
market.
On the average, a 15 per cent
change in number of chicks
hatched, laying and broiler
types, means about one per cent
more eggs available for table egg
use and a one per cent increase in
egg supply can mean a four per
cent or more decrease in farm
egg price.
Through June this year, the
number of broiler-type chicks
hatched by commercial hat
cheries averaged about four per
cent below a year earlier, while
in July the quantity hatched was
about the same as a year earlier.
However, in August the
quantity of broiler-type chicks
hatched exceeded the levels of a
year earlier by two per cent.
For the first three weeks of
September the number of broiler
type chicks housed in 22 com
mercial broiler producing areas
by weeks was between eight and
nine per cent above a year
earlier. Eggs in incubators for
the same weeks were between
three and six per cent more than
a year earlier, thus adding
strength to market egg prices
since the number of eggs
available for table egg use
decreased.
The quantity of chicks hatched
for laying flock replacements
averaged about nine per cent
below a year earlier through July
this year. In August about 29 per
cent more chicks were hatched
than a year earlier, but only a
little more than were hatched in
August, 1969. Eggs in incubators
in the first of September for
hatching laying-type chicks were
about 15 per cent below a year
earlier and were up five per cent
for broiler-type chicks
Each one per cent change in the
quantity of broiler-type chicks
hatched has a greater impact on
the supply of market eggs than
does the same per cent change in
quantity of chicks hatched for
market egg production. Through
August this year over two billion
broiler-type chicks were hatched
compared with only about one
third of a billion laying-type
chicks.
About 6.9 per cent of the eggs
produced by the nation’s laying
flock through June of 1971 were
used for hatching chicks com
pared with 7.5 per cent in 1970,
making about Vz per cent more
eggs available for the shell egg
market.
In August, hatching of chicks
required about Vi per cent more
of total egg production for the
month than a year earlier. Thus,
hatching needs added strength to
market egg prices by taking
about % per cent more eggs
during the month as compared to
the first half of the year.
Breakers May Drop
Although the quantity of eggs
sold to breakers, as indicated by
the commercial egg movement
report, has averaged above a
year earlier throughout most of
this year, it is not likely this in
crease would continue
throughout the remainder of the
year.
If needs for breaking stock
decrease, it can weaken egg
prices. It could offset the effect of
a possible continued increase in
the quantity of broiler chicks
hatched.
When forecasting future prices,
consider all aspects of supply and
demand at a given time. This
would include, among other
things, demand for hatching
eggs, exports, imports, govern
ment purchases, production of
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Prices are expected to continue
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