NEW YORK (AP) – In February, egg prices soared to a new record high as the impact of avian influenza continues to severely affect the poultry industry. With Easter and Passover approaching, the cost of a dozen Grade A eggs reached an average of $5.90 across U.S. cities, reflecting a staggering 10.4% increase from the same time last year. This figure surpassed January's previous record of $4.95, marking not only sustained inflation in egg prices but also heightened consumer concern as important holidays approach.
Avian flu has been catastrophic for farmers, leading to the culling of over 166 million birds, primarily egg-laying chickens. In just the first few months of 2023, more than 30 million egg layers have been lost. The ongoing crisis has prompted fears of limited supply, especially as both Easter on April 20 and Passover, beginning on the evening of April 12, are times when eggs hold significant cultural and culinary importance.
Historically, the price of eggs has remained below $2 per dozen for decades prior to the avian flu outbreak. The U.S. Department of Agriculture (USDA) forecasted a staggering 41% increase in egg prices this year compared to last year's average of $3.17 per dozen. However, there may be some remediation on the horizon, as recent reports indicate that egg shortages are beginning to ease and wholesale prices are on the decline.
According to a March 7 report from the USDA, consumers are starting to see more availability of shell eggs in stores, though retail prices have yet to adjust to the relief in supply. David Anderson, an economist specializing in livestock and food marketing at Texas A&M University, noted that the drop in wholesale prices might lead to lower retail prices as consumers begin to reduce their purchases in response to the inflated costs. He expressed optimism that the next Consumer Price Index (CPI) report could reflect these potential decreases, though he cautioned that lasting relief depends on the replenishment of bird stocks and egg production capacity.
Despite the optimistic outlook, Anderson highlighted that achieving increased production will take time. The current high prices serve as an incentive for producers to enhance output, but logistical challenges remain regarding the restoration of bird populations post-culled. The perception among advocacy groups is somewhat more skeptical, as they have called for investigations into whether egg producers are exploiting the avian flu situation for price gouging. The producers, however, maintain that the avian flu is the sole cause behind the current price surges.
Additionally, the situation has prompted restaurants across the country to adopt surcharges or modify menu offerings to compensate for the increased cost of eggs. Meanwhile, the Trump administration has rolled out a comprehensive plan aimed at combatting the avian flu crisis. This includes a $500 million investment for biosecurity measures, $400 million in financial support for affected farmers, and $100 million dedicated to research for vaccines and potential therapeutic options for chicken flocks in the U.S. Nevertheless, the impact of these interventions is expected to be gradual.
