The cost of eggs is expected to normalise before the holiday season, according to USDA reports indicating increased egg production.
Large white eggs at the national wholesale level have seen a continued decrease for four consecutive weeks, reaching $3.27, the year’s lowest point. Egg processing volume showed a 0.5% increase, reaching its highest point in three months, as reported by Business Insider.
This improvement follows a significant disruption in US egg production, where bird flu outbreaks across nine states resulted in the culling of over 30 million chickens.
The supply constraints had driven wholesale prices beyond $8 per dozen, creating shortages in shops and additional charges in eating establishments.
University of Central Arkansas economics professor Jeremy Horpedahl informed Business Insider that retail prices typically adjust with a lag, taking time to reflect wholesale changes.
According to Horpedahl, price adjustments following the previous avian flu (another name for bird flu) outbreak two years ago required approximately four weeks to normalise as shops cleared costlier stock. “The most recent monthly data from BLS was about $6 a dozen, so retailers are selling at six that are paying eight,” he said. “I think a lot of them have been taking losses, which might mean they might be a little slower to lower prices in the future.”
Thus, shop prices should begin decreasing in the coming weeks, provided no new significant outbreaks occur.
Whilst the USDA reports no “significant” avian flu outbreaks this month, Horpedahl noted that minor incidents suggest the virus remains active.
The US experiences regional variations in egg supply and pricing. Ohio accounted for nearly half of this year’s avian flu losses, with Indiana following, where efforts to control infections continued earlier this month. “We’re still a month away from Easter,” Horpedahl said. “I think that maybe by then, you could actually be seeing retail prices start to fall, or at least the supply chains will have caught up to where you won’t have the shortages.”