US egg prices have surged again, hitting a record-high of US$6.23 (A$10) per dozen, despite President Donald Trump‘s predictions, a decline in wholesale prices, and no reported bird flu outbreaks on egg farms.
The recent increase in the Consumer Price Index indicates that consumers and businesses reliant on eggs may not see immediate relief. Demand for eggs tends to rise until after Easter, which is on April 20 this year.
Experts in the industry anticipated that the index would show a decrease in retail egg prices due to a significant fall in wholesale egg prices in March. University of Arkansas agricultural economist Jada Thompson noted that wholesale prices only began to decline in mid-March, suggesting that there wasn’t enough time for the average monthly price to drop. Additionally, grocery stores may not have quickly adjusted their prices.
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The Impact of Bird Flu
Bird flu outbreaks were primarily responsible for the price spikes seen in January and February, leading to the culling of over 30 million egg-laying chickens to prevent disease spread. In March, only 2.1 million birds were slaughtered, and none were from egg farms.
Egg prices reached US$5.90 (A$9.49) in February, following a previous record of US$4.95 (A$7.96) per dozen, as reported by the US Bureau of Labor Statistics.
The farms affected by fall outbreaks are working to resume egg production, having sanitized their barns and raised new flocks. However, chickens require approximately six months to mature before they can begin laying eggs. Thompson mentioned that these farms have not returned to production as quickly as expected.
According to the latest figures from the US Department of Agriculture, there were approximately 285 million hens laying eggs nationwide as of March 1, down from the usual 315 million prior to the outbreaks.
Since the onset of the current bird flu outbreak, more than 168 million birds have been culled, predominantly egg-laying chickens. To control the spread of bird flu, entire flocks are slaughtered whenever a bird is found to be sick, significantly impacting egg supply as large farms may house millions of birds.
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Politics of Egg Pricing
Trump claimed credit for the recent drop in wholesale egg prices reported by the USDA.
"Egg prices were skyrocketing. You did a fantastic job," Trump stated to Agriculture Secretary Brooke Rollins before announcing his tariffs at the White House last week. "Now we have plenty of eggs, and they are much cheaper now."
However, experts believe that the president’s approach to combatting bird flu by enhancing egg farmers’ defenses will provide more long-term benefits.
The Agriculture Department sought to bolster the supply by importing eggs, resulting in the importation of nearly 4 million dozen eggs in February. Yet, with high demand, traders exported 7.6 million dozen eggs. Data for March is still pending.
"Many people are hoping to see egg prices decrease, labeling it a victory. In reality, it’s a loss for everyone. We all want lower egg prices," Thompson remarked.
Rollins indicated that the rise in egg prices might be short-lived. She noted a slight overall dip in the Consumer Price Index, suggesting that egg prices would likely follow suit.
"We are entering the peak season for eggs, which is Easter," Rollins added. "From the outset, I have said that this represents a high point for retail egg prices, but we are confident that they will continue to decline."
Earlier this week, Trump announced that the annual White House egg roll would utilize real eggs again this year, despite the high costs, with farmers typically donating over 30,000 eggs for the event.
Egg Prices Across the Nation
According to Datasembly, a market research company, US egg prices began to decline in mid-March. The average price for a dozen eggs was US$5.98 (A$9.62) during the week of March 16, dropping to US$5.51 (A$8.86) in the week starting March 30.
However, prices vary significantly across the country due to recent bird flu outbreaks and state regulations mandating cage-free eggs. For example, a Walmart in Richmond, California, priced a dozen eggs at US$6.34 (A$10.20), while in Omaha, Nebraska, the price was US$4.97 (A$7.99). California mandates cage-free eggs, while Nebraska does not.
The latest statistics might attract scrutiny toward Cal-Maine Foods, which supplies 20 percent of the nation’s eggs, along with other major egg producers.
Recently, Cal-Maine acknowledged an investigation by the antitrust division of the US Department of Justice regarding egg price increases. The company stated it is cooperating with the investigation.
In its latest financial quarter ending March 1, Cal-Maine reported a net income of US$508.5 million (A$817 million), more than tripling from the same period last year.
Turning to Alternatives
The rising cost of real eggs is prompting some consumers to seek alternatives for Easter crafts this year.
Craft retailer Michaels reported a 20 percent increase in sales of their plastic egg craft kits, which were priced at US$2.49 (A$4) on their website. Typically, sales peak closer to Easter, but a significant uptick was observed in early March this year.
"With just over a week until Easter, our craft egg kits are nearly sold out," the company stated.
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