As the Easter holiday approaches, demand for eggs is anticipated to remain elevated. However, consumers have been grappling with record-high egg prices as recent data from the U.S. Bureau of Labor Statistics revealed that retail egg prices reached an all-time high in February. On average, consumers paid $5.90 for a dozen large grade A eggs, marking a significant increase in cost amid a deadly bird flu outbreak that significantly impacted the nation's egg supply.
The bird flu outbreak, which led to the loss of millions of egg-laying chickens, severely curtailed the egg supply in the U.S., driving prices upward. Consequently, households began stockpiling eggs out of fear that prices would continue to escalate. This situation prompted authorities to take action, as the U.S. Department of Justice launched an antitrust investigation into the pricing and supply practices of major egg producers.
March has brought some relief, as bird flu outbreaks appear to have tapered off. The pullback has led to improved supply conditions and a corresponding decrease in wholesale egg prices. On Friday, wholesale prices dropped to $4.83 per dozen, reflecting a 44% decline from their peak of $8.58 per dozen on February 28.
"Slowing [bird flu] outbreaks are leading to improved supply availability and wholesale market prices have responded with sharp declines over the past week," stated the U.S. Department of Agriculture.
This improvement in supply has been aided by weaker consumer demand, which has allowed the egg market to begin recovering from the previous shortages. However, experts caution that retail prices may not immediately reflect these changes due to a typical lag of at least two to three weeks between adjustments in wholesale costs and retail pricing.
In addition to current supply dynamics, Kevin Bergquist, an egg analyst at the Wells Fargo Agri-Food Institute, suggested that price variability is expected to persist in the near future.
"Egg prices will likely remain highly variable for the near future, but at a higher-than-usual level," noted Bergquist.
Looking forward, it remains uncertain how quickly consumers will start seeing relief at the retail level. As Easter festivities approach, demand is predicted to stay strong, potentially influencing future price trajectories.