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Egg Prices For Wholesale Have Dropped 52% — Here's What That Could Mean For Your Grocery Bill

February 9, 2023 from The The Enrepeneur:

• "The price for wholesale eggs dropped to $2.61 a dozen on Monday.
• "A senior data analyst at Urner Barry, Angel Rubio, said prices have "collapsed."
• "It might take a month for wholesale price changes to affect consumers.

"According to Urner Barry, a market research firm focused on things like meat, eggs, and seafood, the price for wholesale eggs dropped to $2.61 a dozen on Monday.

"Compare that to the price of a dozen eggs wholesale on Dec. 19: $5.43. As the outlet noted, that's a drop of 52%.

"wholesale prices are more sensitive than retail ones. If the wholesale price moves 10%, then the retail price would move a corresponding 2% on average.
"t takes about a month for wholesale price changes to affect consumers.

"Brian Moscogiuri, a global trade strategist at Eggs Unlimited, told the outlet that lower demand post-holiday season, and a few weeks without new avian flu outbreaks, have given egg producers and sellers a break.

"However, he added, because avian flu has been found among non-chickens, it's still "a major risk heading into the spring migration."

Egg prices to remain high for as long as bird flu continues, experts say

February 2, 2023 from The Food Dive:

"More than any other grocery store food item, egg prices are skyrocketing as producers struggle to meet supply.

"Experts do not expect prices to return to where they were before last year’s highly pathogenic avian influenza (HPAI) outbreak — which has resulted in the culling of more than 58 million birds, according to the CDC — as long as the supply of the protein continues to be strained. This could take several months, said Kevin Bergquist, Wells Fargo’s Agri-Food Institute sector manager.

"Some policymakers and consumer advocacy groups are urging the federal government to take action against producers who they see as a monopoly of egg giants gouging consumers amid an already fraught economy.

"According to the most recent Consumer Price Index from the Bureau of Labor Statistics, egg prices increased 11.1% on a monthly basis in December, and were up nearly 60% compared to the same time a year before. This led the overall food index to increase 0.3% in the month, after slightly decreasing the two months prior.

"The HPAI outbreak, commonly referred to as bird flu, began in early 2022 and is the primary factor fueling the price hikes. The CDC has not reported any new cases of bird flu in backyard or commercial flocks since late December, indicating that new infections could be subsiding.

"Consumers trading down to proteins including eggs and poultry instead of red meat in recent years has also contributed to the tightening supply, according to USDA.

"The high cost of inputs like feed, labor and fuel, followed by bird flu created a “perfect storm” for a difficult egg growing season in 2022, according to AgAmerica Senior Director of Partner Relations Curt Covington. Government assistance has helped farmers fund the growth of new flocks, Covington said, but their ability to meet supply for eggs requires time for those new birds to develop.

"Prices have slightly improved since their peak of late December and early January. According the USDA’s most recent egg market report, prices remain elevated relative to early 2022 but fell during each week of January. According to Bergquist, this reflects a normal seasonal drop in prices after the holiday season.

"In order for prices to go back to normal levels, the Wells Fargo analyst said, the virus must cease to be a major factor in negatively impacting egg production. In normal years, he said, egg prices increase around Easter. Economists predict the springtime holiday will lead to a price spike this year, but they could then level out.

"Accusations of price gouging from consumer advocacy groups have called the motives behind price increases into question. Farm Action, an NGO made up farmers and other food industry workers, argued in a letter sent to the FTC last month that the impact of avian influenza actually did not warrant such a dramatic increase in the supply of eggs. The group pointed to USDA data indicating 2022 saw egg laying rates that were 1% to 4% higher than those in 2017 to 2021."