Showing posts with label Egg Prices. Show all posts
Showing posts with label Egg Prices. Show all posts

Monday, February 17, 2025

Egg Prices Are Nothing to Yolk About

Egg prices are the center or yolk of the latest political ruckus. Democrats are egging on President Trump to lower the cost of a carton of a dozen Grade A large eggs as prices, adjusted for inflation, reached a 45-year high this week.  Democrat surrogates have flocked to social media to hen peck at the issue.

"I had to dip into my 401K to buy a carton of eggs," one woman posted. Another said: "Instead of cutting the government, cut egg prices." Others clucked: "The Powerball is up to 4 dozen eggs." "Broke an egg this morning.  My insurance company is sending an adjuster."  

You get the drift.  Donald Trump has single handedly jacked up egg prices to pay off his billionaire cronies. This is what passes as Washington political theater.  Twenty-one Democrat lawmakers dispatched a letter accusing Trump of "largely ignoring" the problem in his first three weeks in office.

The letter demands Trump "lower food prices by encouraging competition and fighting price gouging at each level of the food supply chain." The lawmakers, marshaled by Massachusetts Senator Elizabeth Warren, pledged to work with the president to make eggs a great bargain again.

Democrats are the ones with egg on their faces if they believe Trump is responsible for surging egg prices.  They need to leave their cozy Washington nest and visit chicken farms in America.

Egg prices are skyrocketing because of a nationwide outbreak of avian influenza. The virus occurs naturally among wild aquatic birds (think ducks) worldwide. These migrating birds infect domestic poultry.  The highly contagious influenza spreads quickly among caged chickens. 

Euthanizing flocks is the best option to combat the spread. More than 150 million chickens have been killed in all 50 states to halt the virus since 2022, according to the Department of Agriculture (USDA).This is the largest outbreak in the United States since 2015.  

Even more worrisome, the Centers for Disease Control and Prevention (CDC) reports there have been bird flu detections in dairy cattle, including cows in Arizona. Although rare, there have been 68 human cases, including one confirmed death. CDC says the source of the human infections is unidentified.

As culling accelerates, egg prices have soared 53% since January of last year.  This past month prices for a carton of Grade A large eggs leapfrogged another 15%.  The national average price for a dozen eggs in January was $4.95.  That eclipses the record set in January 2023, when the price was $4.82.

Although prices are climbing, the demand has not slackened because high-protein eggs are considered a staple in most households. The average American eats 284 eggs a year, an increase from last year's total of 281.  (Per capita consumption is a measure of total egg production divided by the population.) 

There is little relief in sight for the American consumer.  In November, seven million chickens were destroyed. By last December, the number jumped to 18 million and rose to 23 million in January.  Despite the culling of infected chickens, the virus has been advancing like a Bataan Death March.

Most egg-laying farms maintain fewer than 100 chickens, but large producers house upwards of 100,000. Broiler farms, which bred chickens for meat, range in size from 40,000 chickens to more than 500,000. Once infections are detected, the safest course to euthanize the entire flock. 

Eggs Unlimited Vice President Brian Moscogiuri offers this perspective on the egg crisis. "In the last few months alone, since the middle of October, we've lost 45 million egg-laying hens. We've lost a significant amount of production, more than 13%." 

Eggs Unlimited is one of the largest international supplier of eggs. The firm ships eggs to major retailers, distributors and food service companies.  "For consumers, (we're) trying to limit their impact with the pricing and the supply chain shortages we're seeing right now," Moscogirui says.

Just this year about one-in-12 caged hens have been culled. Considering lifecycles, it takes about five months before hens begin laying eggs.  By comparison, chickens raised for meat are ready for slaughter after a month-and-a-half.  

With Easter on the horizon, the demand for eggs likely will shoot up. Some grocery stores are already limiting the number of cartons customers can purchase.  In a sign of the times, earlier this month 100,000 organic eggs worth an estimated $40,000 were stolen from a facility in Pennsylvania.

Consumers best hope are egg farmers. There are 48,952 businesses engaged in chicken egg production, centered in just ten states, accounting for 65% of the egg output. These small and large farms produced about 109 billion eggs in 2023, the latest year for which figures are available.

America's chicken egg-laying farms have dealt with adversity before and managed each time to scramble to restart production.   They will deliver again to  consumers who will no longer have to walk on egg shells when they search for egg cartons at the grocery store. 

Monday, February 13, 2023

Egg Prices Are Nothing To Yolk About

  • 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.