NAICS 112310 Quarterly Industry Report
Chicken Egg Production
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 112310Sector: Agriculture, Forestry, Fishing and Hunting (11)Updated: Q1 2026
About This Report
This Fair Market Value industry report (NAICS 112310) provides valuation-focused intelligence for professionals assessing chicken egg production businesses. Additional data is drawn from Bureau of Labor Statistics[5], U.S. Census Bureau[6].. Data is sourced from USDA NASS chickens and eggs reports[7], USDA ERS poultry market analysis[8], and SBA size standards[9] to support business appraisals, acquisition due diligence, lending decisions, and investment analysis for egg production enterprises.
Industry Definition & Overview
Chicken Egg Production (NAICS 112310) encompasses establishments primarily engaged in raising chickens for egg production, including both table egg operations that supply the consumer market and hatching egg producers that supply the broiler and layer replacement industries. The USDA National Agricultural Statistics Service[3] reported total U.S. egg production at roughly 109 billion eggs for the year ending November 2024, with table egg production accounting for 93.1 billion eggs and hatching egg production at 15.4 billion. Layer hen inventory stood at roughly 311 million commercial birds as of late 2024, down 3% from the prior year due in part to highly pathogenic avian influenza (HPAI) impacts.
Iowa, Ohio, Indiana, Pennsylvania, and Texas rank as the top egg-producing states, with large integrated operations dominating commercial production volumes. Industry structure has shifted dramatically toward cage-free and enriched colony housing systems in response to state legislation, retailer commitments, and consumer demand for animal welfare improvements. The USDA Economic Research Service[4] tracks these market dynamics alongside feed cost analysis and trade data. Revenue for egg producers depends on shell egg wholesale prices, which can fluctuate sharply due to seasonal demand patterns, avian influenza outbreaks, and export market conditions. Feed costs, primarily corn and soybean meal, represent the single largest variable expense.
Business valuations for egg production operations must evaluate layer house capacity and housing system type, flock age and production curves, environmental permit status, egg grading and packing capabilities, customer contract terms, and biosecurity infrastructure. The transition from conventional cage to cage-free housing requires substantial capital investment, making facility modernization status a critical factor in determining enterprise value.
What's Included in This Industry
- Sector-specific valuation multiples and financial benchmarks for chicken egg production operations
- Revenue and profitability analysis across table egg, hatching egg, and cage-free production models
- SBA size standard classification and lending threshold data for NAICS 112310
- Comparable transaction data from recent egg production facility sales, acquisitions, and expansions
- Housing system transition analysis covering conventional cage, enriched colony, and cage-free capital requirements
- Workforce and labor cost benchmarking for farm managers, egg processing staff, and maintenance teams
- Industry risk assessment including avian influenza exposure, feed cost volatility, and pricing swings
- Environmental and animal welfare compliance overview covering state cage-free mandates and USDA standards
- Capital expenditure profiles for layer houses, egg processing equipment, and biosecurity infrastructure
- Production efficiency metrics including hen-day production rates, feed conversion, and flock mortality data
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Agriculture, Forestry, Fishing and Hunting | 11 |
| Subsector | Animal Production and Aquaculture | 112 |
| Industry Group | Poultry and Egg Production | 1123 |
| NAICS Industry | Chicken Egg Production | 11231 |
| National Industry | Chicken Egg Production | 112310 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 112340 | Poultry Hatcheries | Poultry hatchery operations that supply day-old chick replacements for layer flocks and serve as downstream customers for hatching egg producers |
| 112320 | Broilers and Other Meat Type Chicken Production | Broiler and other meat-type chicken production operations that share feed supply chains, poultry health infrastructure, and genetic supplier networks |
| 311615 | Poultry Processing | Poultry processing establishments that purchase spent layer hens for processing into soup stock, pet food ingredients, and further processed products |
| 311999 | All Other Miscellaneous Food Manufacturing | All other miscellaneous food manufacturing operations including liquid, frozen, and dried egg product processors that purchase shell egg inputs |
| 424440 | Poultry and Poultry Product Merchant Wholesalers | Poultry and poultry product merchant wholesalers that distribute graded shell eggs from production facilities to retail and food service customers |
| 311119 | Other Animal Food Manufacturing | Other animal feed manufacturing operations producing specialized layer rations, pullet starter feeds, and nutritional supplements for egg producers |
SBA Lending Summary
528
Total SBA Loans
$976.4M
Total Loan Volume
$1.8M
Average Loan Size
16 yrs
Average Loan Term
8.69%
Average Interest Rate
1,552
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[2]
Key Insight: The SBA[10] classifies Chicken Egg Production (NAICS 112310) with a size standard of $19.0 million in average annual receipts. This elevated threshold reflects the capital-intensive, high-volume nature of commercial egg production where individual operations house hundreds of thousands to millions of laying hens. Operations below this threshold qualify for SBA-backed financing[11], government contracting set-asides, and related small business support programs. Eligible businesses can access SBA 7(a) loans[12] for working capital, equipment, and acquisition financing, while 504 loans[13] support major fixed-asset purchases including real estate and heavy machinery.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Live Oak Banking Company | 248 | $645.6M | $2.6M |
| 2 | First Service Bank | 160 | $177.1M | $1.1M |
| 3 | Southern Bancorp Bank | 16 | $70.9M | $4.4M |
| 4 | Stone Bank | 24 | $41.8M | $1.7M |
| 5 | Renasant Bank | 24 | $19.0M | $792K |
Frequently Asked Questions
Common questions about this industry.
What is the NAICS code for egg production?
Chicken Egg Production is classified under NAICS code 112310, covering establishments primarily engaged in raising chickens for egg production, including both table egg and hatching egg operations.
What is the SBA size standard for egg production?
The SBA[10] sets the size standard for NAICS 112310 at $19.0 million in average annual receipts, reflecting the capital-intensive nature of commercial egg production facilities.
How many eggs does the United States produce annually?
The USDA NASS[3] reported total U.S. egg production at roughly 109 billion eggs for the year ending November 2024, with table eggs accounting for 93.1 billion and hatching eggs making up the remainder.
What factors drive egg production facility valuations?
Key valuation drivers include layer house capacity and housing system type (cage, cage-free, or enriched colony), flock age and production performance, egg grading and packing capabilities, customer contracts, biosecurity status, and environmental permits per USDA APHIS[14] avian health standards.
How is avian influenza impacting the egg industry?
Highly pathogenic avian influenza (HPAI) outbreaks have caused millions of layer hen depopulations, reducing flock inventory and driving sharp egg price increases. Biosecurity investment and USDA APHIS[14] compliance are now critical valuation factors for egg production operations.
Which states lead in egg production?
Iowa leads U.S. egg production by a wide margin, followed by Ohio, Indiana, Pennsylvania, and Texas per USDA NASS[15] production data, with these five states accounting for a substantial share of national table egg output.
What is the cage-free transition and how does it affect valuations?
Multiple states have enacted cage-free housing mandates, and major retailers have committed to sourcing only cage-free eggs. Converting conventional cage facilities to cage-free systems requires capital investment of $30 to $40 per bird capacity, making housing system status a critical determinant of facility value.
What are the primary costs in egg production?
Feed costs, primarily corn and soybean meal, typically represent 55% to 65% of total production expenses. Other major costs include pullet replacement, labor, utilities, egg packaging materials, and facility maintenance per USDA ERS[4] cost-of-production analysis.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [3]USDA National Agricultural Statistics Service nass.usda.gov
- [4]USDA Economic Research Service ers.usda.gov
- [5]Bureau of Labor Statistics bls.gov
- [6]U.S. Census Bureau census.gov
- [7]USDA NASS chickens and eggs reports nass.usda.gov
- [8]USDA ERS poultry market analysis ers.usda.gov
- [9]SBA size standards sba.gov
- [10]SBA sba.gov
- [11]SBA-backed financing sba.gov
- [12]SBA 7(a) loans sba.gov
- [13]504 loans sba.gov
- [14]USDA APHIS aphis.usda.gov
- [15]USDA NASS nass.usda.gov
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