Why Are Egg Price So High?
We asked readers a few months ago what price rises in our present economic climate of high inflation annoyed them the most. Eggs were by far the most often given response; they were a very inexpensive but necessary commodity, and many customers found price increases to be quite unpleasant. Back then, in August 2022. The price of eggs is currently at an all-time high.
The average price for a dozen “Midwest large” eggs was up to $5.46 as of late December 2022, according to data provided by Urner Barry, a company that monitors the food commodity market. This is significantly more than the $0.89 it was at the beginning of 2020, before the pandemic struck, and even higher than other highs in the low $3 range last summer. Prices have started to decline after the peak egg demand during the Christmas season, and as of January 17, they were back down to $3.64.
As Urner Barry’s egg market analyst Karyn Rispoli noted in an email, “there is nearly always a reduction in demand following the Christmas baking time, which, in turn, leads wholesale prices to decline.” “The heights from which the market is adjusting have, however, made this year’s downturn very abrupt.”
However, many individuals find the egg costs at the grocery store to be shocking. Additionally, eggs can be quite expensive and even difficult to get in some states, such as California.
The tale of inflation in the US economy has included eggs for months. Beyond the price of a single egg at the supermarket, keep in mind that eggs are a component of a wide range of products, from pet food to baked goods and beyond. Therefore, when the Egg Price increases, a lot of things may be put under pressure.
Despite the fact that what happens in the wholesale market is not always instantly and directly mirrored in the grocery aisle, egg prices are starting to decline again as was noted at the top. Because eggs are a mainstay among consumers and are effective at drawing customers in, some grocery shops have made an effort to maintain their costs “competitive,” according to the Wall Street Journal, even if doing so means forgoing some earnings. There will probably be delays in getting prices back down for the several stores that raised them.
The time between wholesale prices and what consumers see as retail prices are often two to three weeks, according to Rispoli.
That, however, is predicated on merchants passing through the decreased prices. When the market reached record highs last month, many stores were selling eggs below cost, so they could be slower to respond now that things are falling.
If you’re a true egghead (sorry), the good news is that eggs are typically available. Although there have been “spotty shortages” of eggs, they have not been severe or widespread, according to The Journal. Regional grocery stores in states like North Carolina and Colorado have experienced sporadic shortages, and specialized or organic eggs occasionally have a tougher time finding.Overall, compared to 2015, egg farmers have been quicker to repopulate their farms and recover from bird flu epidemics.
Despite all of this, the weather is about to warm up, which means that wild bird migration will resume, increasing the risk of diseases. Although producers are improving, they still fall short in safeguarding their flocks against avian flu. In the egg universe, spring is the concern rather than winter.
“The worst is behind us,” said Moscogiuri, “repopulation is ongoing, more output is on its way up, and we don’t see any more [bird flu] as we go back into this spring migration again. But the truth is, we are unsure.
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