December 27, 2024

Spread of bird flu in US leading to spikes in poultry egg prices

The accelerating spread of bird flu through US poultry flocks is pushing the price of eggs to highs rivaling or exceeding the cost in December 2022 at the height of the post-pandemic inflation scare.

The average cost of a dozen Grade A large eggs was US$3.65 in November, up from US$3.37 in October, the US Bureau of Labor Statistics reported in the week of December 9-15, up from US$2.50 at the start of the year, as farmers battle with a fatal strain of H5N1 that continues to disrupt the US egg supply.

The US egg-laying hen flock was down 3% in October from the year prior, or 315 million birds, and egg production was down 4%, according to the US Department of Agriculture (USDA).

The latest consumer price index (CPI) shows that the price of eggs is up 37.5% from a year ago. Food prices overall rose by 2.4% over the same period.

The price hike comes as shoppers stock up for the holidays. Flocks of egg-laying hens are smaller as producers haven't recovered from losses to bird flu over the past two years.

Wholesale prices for large eggs reached US$5.57 a dozen in the US Midwest on December 18, up 150% from a year ago and topping the previous record of US$5.46 from December 2022, commodity data firm Expana said.

In California, where regulations prohibit farmers from raising hens in cages, a dozen eggs is at a record of US$8.85 per dozen, the data firm said. Some stores in the state have instituted caps on egg purchases.

The egg situation may get worse for the $67 billion poultry industry. The USDA has lowered its forecasts for egg production and exports in 2025 while raising its price outlook.

- The Guardian