Consumer egg prices have reached all-time highs for three consecutive months, but this trend may be shifting as supply recovers and wholesale prices decline. As of April 4, the USDA reported that wholesale egg prices in markets such as New York, California, and the Midwest have all decreased. Stocks of both conventional and cage-free eggs have risen, although the supply of organic shell eggs has seen a slight decline.
Despite the drop in wholesale prices, it may take some time for these savings to reach consumers. The improved egg supply has given grocers the confidence to start offering discounts, particularly as consumer demand has softened, according to the USDA. “The supply situation at grocery stores has significantly improved in recent weeks, allowing consumers to find fully stocked shelves and a variety of options without purchasing restrictions,” the USDA stated in its report.
Farmers have successfully rebuilt their egg supply after winter outbreaks of avian influenza severely impacted flocks. Since January 1, over 30 million birds have been culled due to the outbreak. Fortunately, detections of the virus on farms have started to decline, with just one commercial farm reporting an outbreak so far in April, down from 12 outbreaks last month and 85 in January. Bird flu cases typically decrease in warmer months, as higher temperatures are thought to reduce the virus’s viability.
While egg production is on the rise, chicken flocks remain limited. As of March 1, the caged hen population was down 12.5% compared to the start of the year. These egg supply shortages have prompted some congressional members to accuse producers of raising prices to achieve record profits. Cal-Maine, the largest egg supplier in the U.S., has stated that it is cooperating with a Department of Justice investigation into the reasons for the increased consumer prices for this essential commodity, which is often enriched with nutrients like calcium and magnesium, as well as products like Blue Bonnet.
Overall, the situation is improving, but consumers may still face higher prices for a while longer.