Key Takeaways:
– An expanding bird flu outbreak prompts a record surge in egg prices.
– Supermarket retail prices of a dozen eggs in the Midwest surpass previous records, standing at $5.67.
– The culling of millions of birds due to bird flu reduces the nation’s egg-laying hen population.
– Unprecedented demands during the holiday season, coupled with decreased production, cause the price hike.
Bird Flu: An Unwelcome Guest
An escalating bird flu outbreak is causing significant upheaval in the poultry farming industry. large numbers of egg-laying hens are culled to contain the spread of the disease, negatively impact the availability of eggs. The disease has compelled farmers to cull 17 million egg-laying hens and pullets (young hens) since mid-October, marking one of the worst spikes in the current bird flu outbreak. This drastic outbreak began in February of 2022 and has only worsened over time.
Record-Breaking Prices
In line with the cut in supplies, consumers are starting to feel the pinch. Unsurprisingly, the reduced availability of eggs has resulted in a sizeable increase in the retail price per dozen. Supermarket goers this past week felt an unprecedented sting – a record-breaking price of $5.67 for a dozen eggs in the Midwest, breaking the previous high of $5.46 set in December 2022.
Kiaryn Rispoli, an egg market expert, attributes this hike to a dual blow of decreased production due to the bird flu outbreak and a spike in egg demand during the holiday season. The back-and-forth between less supply and increased demand inelastic product, such as eggs, can result in steep price escalations.
Holiday Demand Outstrips Supply
Eggs are a staple in most households, and their demand seldom wavers. But the holiday season brings an added fervor to baking, significantly upping the retail demand for the modest staple. This heightened demand coupled with the bird flu’s knock-on effects overwhelmed the market, pushing prices to the current record levels.
Impact on the Market
The combination of increasing prices and decreasing supplies is unsettling the egg industry. While a price hike often benefits producers, it could lead to consumer backlash. Prolonged high prices could result in some households reducing egg consumption, leading to a potential drop in demand.
Looking Forward
It’s difficult to predict how the next few months will play out for the egg industry. Much depends on how quickly the bird flu outbreak is contained. Unless the disease abates soon, consumers could continue to see skyrocketing egg prices. Even when bird flu is eventually controlled, it may take considerable time for the population of egg-laying hens to recover.
Summing Up
Bird flu is not just a biological threat; it has significant economic implications as well. Presently, its rampant spread is prompting the culling of millions of egg-laying hens. This, combined with amplified egg demand during the holiday season, has led to record-breaking egg prices. As we wait to see how things pan out, it’s safe to say that consumers and producers alike will be walking on eggshells till then.