1. California Egg Production Rebecca Mordini AG 150 May 2014

2. Congratulations Production Trends Location Marketing Channel Prices, Supply and Demand Export Market Market Structure Business Profile Recommendation 3. Is this a successful commodity for California? Production Trends Current Production Historic Production Number of Farms 4. Current CA Production 5,451,000,000 Eggs Sold $393,245,000 Value Number 20 highest value agricultural commodity in CA 5. Ten Year Production 7% increase 2010-11 6. How many farmers in California are raising layers? 7. Where can you raise layers in California? 8. Marketing Channel Producing Eggs Processing Eggs Shipping 9. Producing Eggs Video from Canby Farms in Oregon Volume of eggs Vertical integration Different types of housing 10. Producing Eggs 11. Processing Eggs Video from American Egg Board Processing plant Automation 12. Processing Eggs 13. Small Farm Production Kingbird Farm Organic Farm in Berkshire NY Pasture raised hens This clip is from the Video Mentor series, produced by the Cornell Small Farms Program (http://nebeginningfarmers.org), filmed and edited by Peter Carroll of Ithaca, NY. This project was supported by the Beginning Farmer and Rancher Development Program (BFRDP) of the National Institute of Food and Agriculture, USDA, Grant # 2009-49400-05878. 14. Small Farm Production 15. Shipping 16. Supply and Demand Increasing Demand Factors Health benefits High protein diet trends Specialty eggs Cost of replacements Policy changes Seasonal 17. Supply Factors Recent supply Increase has kept prices steady Stable prices give farmers incentive to increase production/supply 18. Export Market Number 54 in CA exports CA -2.5 % of US egg exports in 2012 19. Top US Egg Export Destinations US egg exports 44.2% higher in 2013 than 2012 20. Prices 21. Historic Price Trends 22. Ten Year Prices 23. Research and Promotion Program American Egg Board est. 1976 18 members Collect fees 24. Research and Promotion Program 25. Research and Promotion Program: American Egg Board 26. Research and Promotion Program: American Egg Board 10 cents per case 30 dozen eggs ea For producers over 75,000 hens 2013: 142 handlers collected $22.96M 27. Market Structure: Monopolistic Competition Number of companies with number of layers Low influence on price 16 over 5M 59 over 1M 172 over 75,000 28. Monopolistic Competition: Branding Family Owned Local Farm fresh Specialty Eggs 29. Monopolistic Competition: Low Barriers to Entry Chicks are cheap Any climate No special equipment Direct to consumer 30. Profile: Rosemary Farms 31. Private 32. Opportunity in Eggs Growing demand Rising prices Specialty eggs Policy changes Export market No geographical limits Low barriers to entry 33. Thank you