- Egg prices bolted 138% higher in December from a year ago
- A dozen eggs retails for as high as $12.99 in some areas
- Smugglers are trafficking eggs from Mexico to the U.S.
- A massive bird flu epidemic is to blame for the surging prices
Skyrocketing egg prices are cracking up comedians. "My wife wants something expensive for Valentine's, so I'm going to get her two dozen eggs. Prices are so high, I traded three dozen eggs for two Super Bowl tickets. Shoppers are so mad, they are giving the bird to store managers." You get the yolk.
But egg prices are no laughing matter for consumers. Large Grade A eggs cost an average of $4.25 a dozen in December, a 138% increase from a year earlier, data from the Bureau of Labor Statistics shows. Organic cage-free eggs retail for an average of $7 per carton nationwide.
Overall, food prices soared 10.4% between December of 2021 and December, 2022, the U.S. Department of Agriculture (USDA) reports. Egg prices led the inflationary march by climbing 267% in December at the peek of the holiday baking season, before settling lower by the end of the month.
Depending on where you shop, egg prices can fluctuate widely. In the Upper East Side of Manhattan, a grommet store is selling a dozen large Grade A eggs for $12.99. Organic cage-free eggs will set you back $17.99. That's not chicken feed.
Even as prices somersaulted above $4 a dozen, American consumers continued to purchase eggs. In 2022, the average American consumed 177.5 eggs annually, only slightly lower than 2021, when Americans on average ate 183.5 eggs annually.
A perfect storm of an outbreak of avian bird flu, peak demand and higher costs for feed and transportation are to blame for the historic prices for eggs. Bird flu struck laying-hens in February of last year and continued in waves throughout the U.S., Europe and other countries.
For commercial and small farms, many infections centered along the major Central and Mississippi migratory flyway. Wild birds carry the disease and infect chickens, turkeys and other birds.
The disease claimed 57 million birds, including 44 million laying hens, last year, according to USDA data. At the end of 2021, there were 389 million laying hens in the country. By the end of last October, the number had shrunk to 373 million. As a result, egg inventories were 29% lower in December.
The unprecedented poultry health disaster ravaged chicken yards in 46 states. The last major avian flu outbreak was in 2014-2015, which wiped out 50 million birds. That earlier outbreak started in winter like the current one but the ordeal ended in the following June. The current one lasted through summer.
Texas A&M experts point out that the outbreak of bird flu is not the only factor driving up egg prices. The costs of corn and soybean used in feed have risen with inflation. Additionally, diesel and electricity needed to transport eggs and run farms are more expensive.
With egg prices cracking record levels, U.S. customs officers are intercepting shipments of eggs on the southern border. Customs and Border Protection recorded a rise of 108% in egg seizures in the last three months of 2022. Violators shell out fines of up to $10,000.
Not everyone believes the avian flu is to blame for roiling egg prices. A liberal advocacy group called Farm Action suspects fowl play. The group is urging the Federal Trade Commission Chair Lina Khan to investigate profiteering and collusion between major egg producers.
However, food economists are skeptical an inquiry would uncover wrongdoing. Amy Smith, Vice President at Advanced Economic Solutions, said: "I don't think we've seen anything that makes us think there's something other than normal economics happening right now."
How soon will consumers get a break in egg prices? There may be a temporary drop in prices but with Easter on the horizon demand will rise again. Government experts are forecasting the bird flu may return in the spring, If accurate, consumers again will be scrambling to deal with rising prices.
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