Egg prices hit record high

Introduction to the Egg Price Crisis

U.S. egg prices increased again last month to reach a new record high of $6.23 per dozen despite President Donald Trump’s predictions, a drop in wholesale prices and no egg farms having bird flu outbreaks. The increase reported Thursday in the Consumer Price Index means consumers and businesses that rely on eggs might not get much immediate relief. Demand for eggs is typically elevated until after Easter, which falls Sunday, April 20, this year.

Understanding the Wholesale Price Drop

Industry experts were expecting the index to reflect a drop in retail egg prices because wholesale egg prices dropped significantly in March. University of Arkansas agricultural economist Jada Thompson said the wholesale prices did not start dropping until mid-March, so there may not have been enough time for the average price for the month to decline even though prices started to fall at the end of the month. And grocery stores may not have immediately passed on the lower prices.

The Bird Flu Effect

Avian influenza or bird flu is a disease that naturally spreads among wild aquatic birds worldwide, as well as domestic poultry and other bird and animal species.

Impact of Bird Flu on Egg Prices

Bird flu outbreaks were cited as the major cause of price spikes in January and February after more than 30 million egg-laying chickens were killed to prevent the spread of the disease. Only 2.1 million birds were slaughtered in March and none of them were on egg farms. The farms that had fall outbreaks have been working to resume egg production after sanitizing their barns and raising new flocks, but chickens must be about six months old before they start laying eggs. Thompson said those farms did not come back online as quickly as anticipated. In the latest U.S. Department of Agriculture numbers, there were only about 285 million hens laying eggs nationwide as of March 1, down from 293 million the previous month. Before the outbreak, the flock typically numbered more than 315 million.

Trump’s Plan to Fight Bird Flu

Trump tried to take credit for the lower wholesale egg prices the USDA reported in recent weeks. But experts say the president’s plan to fight bird flu by focusing on strengthening egg farmers’ defenses against the virus is likely to be more of a long-term help. “I think there are lots of people who are looking to see the egg prices coming down because they wanted to call it a win. And I think it’s a loss for everybody. I think we all want to see egg prices come down,” Thompson said.

Egg Prices Around the Country

U.S. egg prices did begin falling in mid-March, according to Datasembly, a market research company that tracks prices at thousands of stores. Datasembly said eggs averaged $5.98 per dozen the week beginning March 16 and dropped to $5.51 the week beginning March 30. But prices vary widely around the country, depending on the location of recent bird flu outbreaks and some state laws requiring eggs to be cage-free. Cage-free eggs were $9.99 per dozen at a Safeway in downtown San Francisco on Thursday. At a Safeway in Denver, the same cage-free eggs were $6.69 per dozen. On the lower side: Washington D.C., which doesn’t require eggs to be cage-free, is seeing a dozen eggs go for as cheap as $5.29 at a local Safeway. Back across the country, Walmart is selling eggs for $4.97 per dozen in Omaha, Nebraska.

Impact on the Egg Industry

Egg prices are still expected to decline further later this spring, but the latest numbers could also increase scrutiny of Cal-Maine Foods, which provides 20% of the nation’s eggs, and other large egg producers. Earlier this week, Cal-Maine acknowledged it is being investigated by the antitrust division of the U.S. Department of Justice, which is looking into egg price increases. Cal-Maine said it is cooperating with the investigation. In its most recent quarter, which ended March 1, Cal-Maine said its net income more than tripled to $508.5 million compared to the same period a year ago. The company said its revenue nearly doubled to $1.42 billion, largely because of higher egg prices.

Conclusion

The current egg price crisis is a complex issue, influenced by factors such as bird flu outbreaks, wholesale price drops, and state laws requiring cage-free eggs. Despite President Trump’s predictions, egg prices have reached a record high, affecting consumers and businesses alike. As the situation continues to unfold, it is essential to monitor the developments in the egg industry and the impact of bird flu on egg prices.

FAQs

1. What is the current record high for egg prices in the US?
   • The current record high for egg prices in the US is $6.23 per dozen.
2. What is the main cause of the recent egg price spikes?
   • The main cause of the recent egg price spikes is the bird flu outbreaks that led to the killing of over 30 million egg-laying chickens.
3. How does the bird flu affect egg production?
   • The bird flu affects egg production by causing the death of egg-laying chickens, which leads to a decrease in the number of hens available for egg production.
4. What is President Trump’s plan to fight bird flu?
   • President Trump’s plan to fight bird flu focuses on strengthening egg farmers’ defenses against the virus, which is likely to be a long-term help.
5. How do state laws requiring cage-free eggs affect egg prices?
   • State laws requiring cage-free eggs can lead to higher egg prices, as seen in states like California where cage-free eggs are more expensive.
6. What is the expected trend for egg prices in the coming months?
   • Egg prices are expected to decline further later this spring, but the latest numbers could also increase scrutiny of large egg producers.