Despite the cooling off of inflation in the United States and the stabilization of prices for many groceries in supermarkets, there has been an opposite trend in the price of eggs, which rose by 28.1% year-on-year in August.
According to data from the US Department of Agriculture, wholesale egg prices in August exceeded $3 per dozen, higher than the usual range of $1 to $2.
In recent years, the volatile fluctuations in egg prices have disrupted the market: after hitting a historic high at the end of 2022, prices temporarily dropped, only to rise again at the end of last year.
The skyrocketing egg prices stand in stark contrast to the trends in prices of other groceries. The “Consumer Price Index” (CPI) published by the US Bureau of Labor Statistics shows that the food index increased by 2.1% in August; while the prices of grains and bakery products fell by 0.3% year-on-year, egg prices surged by 28.1%, marking the largest increase among all food items tracked by the Bureau.
According to a report by CNN, the primary culprit for the rise in egg prices is avian influenza. Phil Lempert, a food and grocery industry analyst and editor of SuperMarketGuru.com mentioned, “Avian influenza is definitely the main reason for the price hike.”
The Centers for Disease Control and Prevention (CDC) in the United States stated that since January 2022, the Highly Pathogenic Avian Influenza (HPAI), commonly referred to as avian influenza, has affected nearly 101 million poultry in 48 states.
“Think about how they are raised: cramped spaces, large numbers of chickens,” said Lempert. “When one chicken has avian influenza, they have to cull the entire flock. That’s the issue.”
This helps explain why the latest data released by the US Department of Agriculture on Monday, September 23, showed that egg production in July decreased by 2.6% year-on-year.
The Department of Agriculture also noted that the number of laying hens has declined for the second consecutive month.
In August, the Department of Agriculture indicated, “We will closely monitor the impact of the avian influenza epidemic on prices.” The department added that avian influenza has led to the rise in egg prices this summer due to the reduction in the number of laying hens in the United States.
Fortunately, egg prices are far from as high as they were at the end of 2022 and early 2023.
Currently, the price of eggs for Americans is nearly double what it was before the pandemic. According to data from the market intelligence platform Datasembly, since October 2019, the average price of eggs has soared by 83%. Some states have seen even larger price increases, with Minnesota (+137%), Missouri (+123%), Iowa (+116%), Oklahoma (+109%), and Alabama (+109%) leading the pack.
Kevin Bergquist, Manager at the Wells Fargo Agricultural Food Research Institute, warned in a recent report that if avian influenza infections persist, prices will continue to rise during the fall and holiday seasons this year.
Part of the problem may lie in consolidation. Like other industries, the egg industry has also experienced a wave of mergers, making the United States more dependent on a few large producers.
In a report released this month by the organization Farm Action, which fights against corporate control of the food system, it was stated, “The high egg prices in 2022 and 2023 were products of dominant egg producers manipulating prices, claiming up to 40% profit on a dozen bulk eggs under the guise of inflation and avian influenza.”
However, Emily Metz, President and CEO of the American Egg Board, rebutted this claim. She stated that there are over 3,250 commercial egg farms and hundreds of brands to choose from in the United States.
Metz told CNN in an email, “The fluctuation in egg prices that we have seen is due to many factors, the majority of which are beyond the control of egg farmers.” She pointed out avian influenza, strong demand, and increased costs of feed, labor, fuel, and packaging.
According to “Agriculture Dive,” Marc Dresner, Communications Director of the American Egg Board, stated that despite price fluctuations, consumers continue to purchase eggs, and the amount of eggs purchased has increased over the past few months. Dresner cited data from Nielsen, saying that egg sales in August increased by over 5% compared to 2023, with producers selling 237 million eggs in the past four weeks. The increase in demand is also likely to drive prices up.