is a substantial area of competition between the domestic product and whole dried eggs imported from Holland. Not only is there direct competition between the Dutch and the domestically-produced whole dried egg for many purposes, but also it appears that imports of the Dutch whole dried eggs have been rapidly increasing primarily as a result of the unfairly low price at which they are sold. The Dutch share of the U. S. market rose from 0 percent in 1965 to 1 percent in 1966, to 3 percent in 1967 and 1968, and to 7 percent in 1969. 4/ Neither the rate of increase in the Dutch share of the domestic market nor the share attained in 1969 can be considered inconsequential. Moreover, it seems clear that the increasing Dutch market share is directly attributable to the ability of the Dutch exporters to sell at less than fair value. Users of whole dried eggs have been able to purchase the Dutch product at prices as much as a third lower than the price of the 4/ The following table shows U.S. apparent consumption of whole dried eggs, imports from Holland, and the Dutch share of the U.S. market in recent years. 1 domestic product. In many cases, both the domestic and imported products are used for the same purpose. 5/ This price difference has resulted in a loss of sales by domestic producers, and has depressed the price received by domestic producers below that which would have prevailed had the Dutch product not been available at less than fair value. Under these circumstances, it seems clear to us that the United States industry producing whole dried eggs (1) has been injured by reason of the importation of whole dried eggs from Holland at less than fair value and (2) is threatened with future injury if such imports of whole dried eggs from Holland at less than fair value are permitted to continue. 5/ Six purchases of whole dried eggs from Holland imported during the period December 1968-March 1970 were made by users who also reported purchasing U.S. whole dried eggs within 7 days of purchasing the imports. In each case, the purchaser indicated that Dutch and U.S. whole dried eggs were being used for the same purpose. In the following table, prices paid for the Dutch and U.S. products are compared. Statement of Reasons for Negative Determination of In our opinion no industry is being, or is likely to be, injured, or prevented from being established, by reason of the imports of whole dried eggs 1/ from Holland sold, or likely to be sold, at less than fair value (LTFV). To understand our reasons for this opinion, it is necessary to view the overall competitive conditions in the domestic market for eggs in their various forms and then discuss how the whole dried eggs from Holland have been utilized in such market. How eggs are merchandised In today's merchandising methods virtually all poultry eggs are sold fresh in the shell, or are sold unshelled in liquid, frozen, or dried forms. From the standpoint of most consumers, the most desirable form of the eggs is fresh in the shell and the other forms in the order above described become progressively less desirable, yet progressively more economical to store and to transport. Moreover, unshelled eggs can be separated into albumen (egg whites), yolks, or made into blends thereof (which are also produced in liquid, frozen, or dried forms). These products have special attractions to certain consumers some of whom can only use the albumen or yolks, and some of whom want more or less yolk in their products. Of all the eggs, processed eggs, and egg products heretofore mentioned, 11 1 The term "whole dried eggs means eggs removed from the shell and subsequently dried without any separation of the yolks from the albumen. dried whole eggs are considered to be the "last resort" product when made by most egg processors. They are generally produced in the largest quantity when fresh eggs are most plentiful in supply in relation to the demand for the other forms of eggs, processed eggs, and egg products. Grades of processed eggs Whole dried eggs and dried processed eggs are produced from varying qualities of eggs (the eggs may or may not be candled and their ages may vary) which are processed in differing ways so that the palatability and shelf life of the products are not the same. The palatability of dried eggs may score from 0 to 8. Eggs below score 5 are generally not acceptable in commercial transactions. The shelf life of dried eggs may vary from 3 weeks to 6 months or more depending on how carefully the eggs are selected, processed, and stabilized. The qualities of a high score and long shelf life necessarily increase production costs and command a higher price for such dried eggs than the prices for lower score, shorter shelflife eggs. Whole dried eggs are used principally by bakeries in biscuits, rolls, and cookies; by confectioners in candies; by the premix industry in cake, pie, pancake, waffle, and doughnut mixes; and fried chicken. The need for a high-score palatability and long shelf life in dried eggs varies according to the product in which they are used and according to the standards of the manufacturers. Conditions of competition The LTFV imports of whole dried eggs from Holland have had a lower palatability score than the score of most whole dried eggs sold in the domestic market and similarly have had a shorter shelf life. These circumstances warrant a price differential between the U.S. and Dutch dried eggs when weighing the impact of the LTFV imports on the whole dried egg industry in the United States. In this case, a precise determination of what constitutes an acceptable price differential cannot be expressed in terms of cents per pound for the product. Our determination has had to be based on the circumstantial factors which reflect the conditions of competition in the market place. Available information indicates that about one half of the LTFV imports were purchased by four domestic egg processors to supplement their supplies of whole dried eggs. The other half of the imports were sold by distributors in competition with domestic egg processors. By far the preponderance of the domestic producers of all processed eggs, 1/ measured in terms of numbers of plants or in terms of volume of production, indicated that the LTFV imports There are about 20 firms in the United States which process eggs. |