The cost of eggs has reached unprecedented levels in various regions across the globe in anticipation of the upcoming spring holidays. This surge in prices is a result of a combination of factors, including the impact of the bird flu, a significant increase in consumer demand, and rising expenses for those in the farming industry.
For the second consecutive year, consumers are experiencing high prices before the holidays of Easter and Passover, which both involve the significant use of eggs.
According to government data, the average cost of a dozen eggs in the United States was $2.99 in February of this year, a decrease from $4.21 in the previous year. However, this is still considerably higher than the $1.59 cents per dozen that consumers were paying in February 2021.
The main cause for concern is the bird flu, which has been responsible for outbreaks of a severe respiratory illness in various regions such as Europe, Africa, and Asia in 2020. The virus has now spread to North America in 2021 and has resulted in the death or culling of over 131 million poultry globally in 2022, according to the World Health Organization.
According to the U.S. Department of Agriculture, the number of confirmed cases in both commercial and backyard flocks, impacting a reportedly total of 11.4 million birds. The outbreaks are ongoing.
After the resolution of the bird flu outbreak, the egg market may still experience a prolonged period of instability. The process of replenishing a farm’s flock can take up to six months, resulting in lower egg supplies and increased prices.
When farms have an excess amount of chickens, it can lead to a decrease in prices. This was the case in the United States during the previous summer, resulting in a sharp decline in egg prices to $2 per dozen. The market operates based on the principles of supply and demand. In order to succeed, it is crucial to set a competitive price.
During times of inflation, farmers may struggle to make a profit due to the rising costs. Chicken feed counts for 70% of a farmer’s expenses and its prices have increased by two-fold from 2020 to 2022. Various factors such as weather conditions, disruptions caused by COVID-19, and the ongoing conflict in Ukraine, which led to a surge in wheat and other crop prices, have all contributed to this issue.
In addition, the rise of egg prices can be attributed to government mandates. Several states, such as California and Massachusetts, have implemented restrictions on the use of cages for egg-producing hens since 2018. In the upcoming year, these bans will also be enforced in Washington, Oregon, and Michigan.
According to experts, the transition to cage-free facilities is a significant financial commitment for farmers. However, consumers may not be aware that this contributes to the increased prices they encounter when shopping at the supermarket.