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Interregional Competition for Eggs

1-C Weaver Building, Department of Agricultural Economics and Rural Sociology, Penn State University, University Park, PA 16802; Phone: (814) 865-2561; FAX: (814) 865-3746

Correspondence: Milton E. Madison

An interregional competition model for the U. S. egg industry is developed. The model is used to examine the effect of a change in the marketing costs, due to proposed Salmonella enteritidis (Se) regulations for eggs, on interregional egg markets. In addition, an increase in the demand for eggs is examined to see which production regions would benefit from increased production and prices. The quantity of eggs consumed is not sensitive to supply induced changes (such as the change in egg processing costs caused by potential Se regulations). In contrast, the quantity of eggs supplies is quit sensitive to demand induced changes according to those specified for the model.

Key Words: :Interregional competition • eggs • Salmonella enteritidis • egg marketing costs • egg demand