Wholesale egg costs up 150% from a yr in the past
20 December 2024
3 minute learn
US wholesale egg costs are shattering data as an accelerating outbreak of avian influenza in laying hens slashes provides whereas consumers purchase extra to bake Christmas cookies and different vacation treats, reported Reuters.
The will increase hit shoppers already grappling with cussed inflation and bracing for doubtlessly increased costs on a broad vary of things if President-elect Donald Trump follows via on plans to slap tariffs on items from China and Mexico.
Wholesale costs for big eggs reached $5.57 per dozen within the Midwest on Wednesday, up 150% from a yr in the past and topping the earlier document of $5.46 from December 2022, commodity knowledge agency Expana stated.
Costs are even tougher to abdomen in California, the place provides are additional constrained by guidelines that prohibit farmers from elevating hens in cages. There, eggs set an eye-popping document of $8.85 per dozen, Expana stated.
These excessive costs are a bonanza for farmers who handle to keep away from avian influenza outbreaks and aren’t locked in to long-term pricing preparations that assist management prices at some main retailers. However shoppers may nonetheless endure.
The common retail worth of a dozen eggs exceeded $3.60 in November, up from $2.50 at first of the yr, in keeping with the Bureau of Labor Statistics. Solely in September was the typical worth increased, at $3.80.
Additional worth rises doable
Retailers have been sluggish to move on increased prices, partially as a result of they don’t wish to scare away consumers throughout the busy vacation season, however they might raise costs within the new yr, stated Karyn Rispoli, Expana’s managing editor for eggs.
In an early signal of an impression, US grocery chain Large, owned by Ahold Delhaize, cancelled a promotion deliberate for January round Washington and Baltimore, stated Large pricing director Erik Weenink.
“We simply do not know the place prices are going to take a seat,” he stated.
The primary issue driving egg costs increased is injury to the laying flock from avian influenza. The virus has worn out almost 123 million chickens, turkeys and different poultry in 49 states because the starting of the present outbreak in 2022.
Nationwide, the US laying hen flock in October was down 3% from the yr prior, at about 315 million birds, and egg manufacturing was down 4%, in keeping with the US Division of Agriculture (USDA).
USDA this month lowered its forecasts for egg manufacturing and exports in 2025 whereas elevating its worth outlook.
“There’s not sufficient provide for the export markets, identical to there is not that a lot of a provide for the US market,” stated Greg Tyler, CEO of the USA Poultry & Egg Export Council, a commerce group.
People impacted
Of 35 million business egg-laying hens killed by fowl flu this yr, almost half contracted the virus previously three months, knowledge reveals.
Staff in Iowa, the highest egg-producing state, started culling a large flock of 4.2 million hens that examined constructive this month.
“We’re in a type of home windows the place it is simply rampant,” Rispoli stated.
Wild birds can transmit the virus to poultry flocks. This yr, outbreaks amongst cows additionally elevated dangers for farm supply vans to hold the virus to poultry barns from dairies.
The virus has contaminated 61 folks up to now this yr, in keeping with federal knowledge. The instances in people have principally been delicate, although officers confirmed the first extreme case this week in Louisiana.
USDA has been funding vaccine analysis that might be used to guard poultry and cows from fowl flu.
Agriculture Secretary Tom Vilsack advised Reuters the company has funds to buy a number of the vaccine and it will be logical for the Trump administration to proceed supporting vaccine improvement.
