Laying hens have fallen off the us market

455

www.vsyako.netPhoto: Peter Gercke / ZB / Globallookpress.com

The largest egg producer in the US — Cal-Maine Foods reported a loss, caused by “excessive activity of laying hens”. The company complained to record the overproduction of eggs that collapsed prices and forced to sell at a loss. About it reports Bloomberg.

In the company’s report on the results of the 2019 fiscal year, which ended July 1, says net loss amounted to 19.8 million dollars. Sales fell to 280,6 million dollars. CEO Dolph Baker explained that the difficult situation on the market. He recalled that the average market price of eggs in the South-East of the country fell by more than half (52 percent), compared to last year.

The company also expressed concerns about price increases on food: one of the wettest in the history of the cultivated seasons threatens to lower grain yield. “We expect feed costs will be potentially higher in the 2020 financial year,” concluded Baker. The difficult situation on the market and the potential growth of feed costs forced the company to refuse the payment of interim dividends.

The average price of a dozen eggs in the retail trade in the U.S. is 1,203 USD. This is 26 percent less than a year ago, according to Bloomberg. During the year Cal-Maine Foods lost 41 cents of the proceeds from each dozen for 10 cents more than analysts had forecast.

The number of laying hens in the country is approaching a record high level, and they carry more eggs than ever. According to the Ministry of agriculture in April 2019, there were 341,5 million chickens, by June the number had dropped to of 331.5 million, but it’s still nearly 3 million more than last year.

Video, photo All from Russia.

LEAVE A REPLY

Please enter your comment!
Please enter your name here