June 16, 2023

US egg prices return to normal levels as avian influenza impact subsides

Retail egg prices in the US are finally easing back to historical averages, bringing relief to consumers who faced soaring prices after last year's avian influenza outbreak significantly contributed to rising egg prices, Capital Press reported.

According to the US Consumer Price Index, the national average retail prices for a dozen grade A shelled eggs reached nearly US$5 in January. Recent grocery data showed that average prices are now ranging between US$1 to US$1.40 nationally, with slightly higher prices in the west.

The surge in prices was influenced by multiple factors, including inflation, but industry executives attribute the largest factor to the widespread occurrence of highly pathogenic avian influenza. Since February of last year, avian flu outbreaks has resulted in the death of approximately 59 million birds in the US. New cases of the bird flu have significantly reduced in recent months, with the USDA reporting only two cases on commercial farms in April 2023 compared to 106 cases in April 2022.

US farmers are in the process of rebuilding their flocks, leading to a rebound in egg supplies. In May 2023, the USDA estimated that the total U.S. egg-laying hen population increased by 5% compared to the previous year.

Marc Dresner, spokesman for the American Egg Board, said that most affected farms have recovered thanks to experience, preparedness, and strong partnerships with USDA and local authorities. He described the current egg supply as "robust," with approximately 307 million egg-laying hens across the country, equivalent to nearly one bird per American.

While the drop in prices has been advantageous for consumers, egg industry leaders express concerns about thin profit margins due to high input costs. Eggs are treated as commodities, and wholesale prices are determined by the market.

Dresner said that egg farmers are "price takers" rather than "price makers," and although wholesale egg prices have dropped by nearly 80% since the December highs, the increased costs of egg farm operations have not subsided.

One significant expense for farmers is implementing measures to protect their flocks. Although the threat of bird flu has diminished, it remains a concern, prompting farmers to invest in extensive and often costly security precautions to safeguard their birds.

-      Capital Press