Record-High Egg Prices Unfold Amid Increased Demand
The price of eggs has surged to unprecedented levels, hitting $6.23 per dozen as reported in March’s Consumer Price Index. This significant rise occurs against a backdrop of declining wholesale prices, with no current outbreaks of bird flu impacting egg production.
Current Pricing Landscape
Despite a decline in wholesale egg prices that began in mid-March, consumers are still facing high retail prices. This trend is likely to continue as Easter approaches on April 20, when demand for eggs typically peaks. As a result, many grocery stores have yet to lower prices significantly, which means consumers are still paying elevated rates.
Factors Behind the Price Increase
Recent analysis by agricultural economist Jada Thompson from the University of Arkansas has provided insight into the situation. Thompson noted that the adjustment of wholesale prices may not have been swift enough to reflect in the average retail prices throughout March. She indicated that consumers were unlikely to benefit from the reductions at wholesale due to lagging updates in store pricing.
Another significant factor is the impact of bird flu outbreaks earlier this year. In January and February, over 30 million laying hens were culled to control the spread of the virus, which drastically affected supply. Although no egg farms were affected in March, the ramifications of these earlier outbreaks are still being felt as producers work to rebuild their flocks. The process necessitates that new chickens reach six months of age before they are capable of laying eggs.
Historical Context of Egg Prices
The rising prices are particularly notable when put into context with previous months. February saw egg prices reach $5.90 after hitting a record of $4.95 in January 2023, according to data from the U.S. Bureau of Labor Statistics. Some regions, particularly California, have experienced even steeper price increases, with costs surpassing $12 per dozen in certain stores.
After experiencing a significant dip to $2.04 per dozen in August 2023, egg prices are again rising sharply, reflecting ongoing volatility in the market.
