Perfect Storm Drives Up the Price of Eggs
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Collapse ▲Eggs have been a hot topic lately. Many have noticed the sharp rise of egg prices at the grocery store. The driving force behind the price increase can be explained by supply and demand.
Data from the U.S. Department of Agriculture (USDA) shows egg prices jumped during the holiday season as demand for eggs is normally higher during the holidays. Egg prices also historically increase during times of economic strain, such as the 2008 recession and in 2020 with the spread of COVID. Eggs are the least cost option for high quality dietary protein. It makes logical sense there is increased demand when budgets are tight.
However, the recent situation is more than simple consumer demand. The egg supply was recently reduced by a disease called highly pathogenic avian influenza. This poultry disease is abbreviated HPAI. It spread from wild birds to commercial laying flocks. The control protocol is to depopulate the houses. This disease reduced the laying hen population in the United States by 43 million birds. With fewer birds, comes fewer eggs.
This reduction in supply, coupled with high seasonal demand, and pressure from inflation created the perfect storm for egg prices. A record $5.40 per dozen Large Grade A eggs was set in December of 2022. However, these high prices did not last long. The most current data from USDA shows egg prices are down $2.30 per dozen. The current price is $3.10 per dozen large Grade A eggs.
Although less dramatic, the price of chicken also went up last year. This was also caused by HPAI. Broilers can rebound faster than laying hens because it only takes about 6 weeks from hatching to produce a market ready bird. Laying hens have to grow to maturity before they start laying eggs. It takes about 17 weeks for laying hens to start laying.
Again, it is American farmers to the rescue. They have been able to increase production and bring prices down by increasing supply of both chickens and eggs.
The incredible edible egg is something many may have taken for granted. The price explosion of eggs has made most of us appreciate the humble egg. Eggs really are a wonderful, delicious, and inexpensive source of protein.
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— Seth Nagy is the N.C. Cooperative Extension, Caldwell County Center Director.
The N.C. Cooperative Extension, Caldwell County Center, 120 Hospital Ave.,
#1 in Lenoir, provides access to resources of N.C. State University
and N.C. A&T State University through educational programs and
Publications. He can be reached in person or online