Egg prices are reaching record heights, driven by an avian-influenza outbreak that killed tens of millions of chickens and turkeys this year in the U.S.
According to the research firm Urner Barry, the wholesale price of Midwest large eggs sits at $5.36 a dozen as of this December. Retail prices have climbed more than 30% from January to early December compared to the year before.
Eggs are a staple product for supermarkets, similar to milk and butter. Grocers have been sacrificing profits on eggs to keep consumers' prices competitive and retain store traffic. Some supplies believe potential relief in price will come February or March, but cold weather could hamper production in the near term, according to executives.
"We are trying to keep eggs relatively accessible," said Dan O’Neill, director of the center store and perishables at Angelo Caputo's Fresh Markets, a chain of eight stores in Illinois.
Angel Caputo's bought extra-large eggs for $5.09 a dozen, up from $1.30 at the start of the year, O'Neill said. The grocer has been selling eggs slightly above cost as wholesale prices have increased.
Grocery prices continue to increase this year with higher labor and food costs. Organic eggs are on shelves and sometimes less expensive than conventional eggs.
Avian influenza has led to 58 million birds dying — the deadliest outbreak in U.S. history, according to Agriculture Department data. Entire poultry flocks are destroyed after the infection is confirmed in order to limit the epidemic.
More than 40 million egg-laying chickens have died in the current outbreak, according to USDA data. They have fallen by 5%, or 308 million, since January.
The current outbreak is largely assigned to wild birds spreading the virus to farms as they migrate across the countryside, agriculture industry officials have said. They fear the current outbreak could continue.
"There's definitely a lot of cause for concern," said Karyn Rispoli, who determines egg pricing at Urner Barry. Wholesale egg prices have increased for nine consecutive weeks, according to Urner Barry, while there is a strong demand for baking and breakfast, said Rispoli.
Adding to the problem: There isn't much of a substitute for eggs.
"Some of those replacement products are just as rare or expensive," said Max Bowman, the chief financial officer of the largest U.S. egg producer, Cal-Maine Foods Inc., at a November investor conference.
KeHE Distributors has a wide variety of egg brands, including plant-based eggs, said Jennifer Onoja, a senior category manager of dairy, nondairy and refrigerated beverages at the grocery distributor. Eggs cost the company 20% to 50% more than this year.
"All signs are pointing to that this will be something the industry has to deal with," said Emily Metz of the American Egg Board. "We continue to manage it and improve in how we manage it."
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