December 24, 2022

US egg prices surge to a record levels due to bird flu

Egg prices in the US have surged record levels, driven by the spread of avian influenza in the country that has killed tens of millions of chickens and turkeys, Wall Street Journal reported.

Research firm Urner Barry said egg wholesale prices in the US Midwest reached a record US$5.36 a dozen this month.

Data firm Information Resources Inc said retail egg prices have increased more than any other grocery item so far this year. They increased more than 30% from January to early December compared to the same period last year, outpacing prices for all other food and beverages.

The US Department of Agriculture said that the outbreak of highly pathogenic avian influenza, which has killed about 58 million birds, is the worst in American history. After a confirmed infection, poultry farms cull the entire flock to stop the spread of the virus.

Due to inflationary pressures like rising labour, ingredient, and distribution costs, grocery prices are rising along with egg prices. The higher prices have boosted sales and profits at supermarkets.

Supermarkets said they were sacrificing the profit margin on eggs to keep costs low for customers. Suppliers said the cost of eggs may decrease by February or March next year.

-      Wall Street Journal