The Economics of Supply and Demand: Egg Prices
Avian Flu Outbreak Affects Egg Supply
The ongoing avian flu outbreak has forced farmers to euthanize millions of egg-laying hens in an effort to stop the spread of the disease, leading to lower supply and higher prices. This persistent problem started in 2022 and continues to ripple through the economy.
Supply and Demand in Action
"It really is. This started in 2022, and it keeps popping up," says Texas A&M livestock economist David Anderson. "There are some lulls, but then there’s a whole bunch more outbreaks."
Renting the Chicken Solution
Some consumers are turning to a novel solution: Rent The Chicken. This company brings a chicken coop with two to four egg-laying hens to someone’s backyard. Two hens lay about a dozen eggs a week, and four hens lay about two dozen eggs a week. According to co-founder Homestead Jenn Tompkins, customers are more drawn to the concept for peace of mind rather than just saving money on eggs.
Peace of Mind Over Saving Money
"It’s less about the skyrocketing price of eggs but more about knowing they have eggs when there might not be eggs on the shelves at the grocery store," she said.
Rent the Chicken’s Background
Launched in 2013 near Pittsburgh, Rent The Chicken partners with farmers across the U.S. and Canada, offering six-month rentals. Tompkins says they do see interest spike during bird flu outbreaks, like one in 2022.
Egg Price Volatility
Anderson anticipates another record-setting rise in egg prices before they come down near summertime, noting the volatility of the market. In 2022, wholesale egg prices exceeded $5 per dozen before falling to 84 cents by May of that year.
Consumer Response
Consumers take a look at the price at the store, and we buy fewer eggs," Anderson said. "That’s what we expect to see as economists. Markets work, prices are a signal, and that price signal is ‘gosh, we’re going to buy fewer eggs,’ which works to bring down prices."
Local Options
For North Texans considering backyard chickens, Rent The Chicken does not currently have farm partners nearby. The closest option is in Austin, requiring a trip to pick up the chickens and coop.
Conclusion
The ongoing avian flu outbreak continues to affect the egg supply and demand, leading to higher prices. Rent The Chicken offers a unique solution for consumers looking for peace of mind and a reliable source of eggs.
Frequently Asked Questions
Q: What is the cost of Rent The Chicken’s service?
A: The cost varies depending on the number of hens and the length of the rental period.
Q: Can I rent chickens in my area?
A: Rent The Chicken currently partners with farmers in the U.S. and Canada. Check their website for the closest option to your location.
Q: Are the chickens treated humanely?
A: Yes, Rent The Chicken partners with farmers who treat their chickens humanely and provide them with proper living conditions.
Q: How do I maintain the chickens and coop?
A: Rent The Chicken provides instructions and support to help you care for the chickens and coop.
Q: Can I cancel my rental agreement?
A: Rent The Chicken’s rental agreements can be cancelled, but please contact them for specific details and any applicable fees.
