Key Points:
- Consumer egg prices reached a record high last month despite the fading bird flu outbreaks that had limited supply.
- In March, the average cost of large, grade A eggs was $6.23 per dozen, marking a 5.9% increase from the previous month and a 60% jump from the same time last year, according to the Bureau of Labor Statistics’ Consumer Price Index.
- While the egg supply is starting to recover as farms report fewer avian influenza outbreaks, the industry is still rebounding from the devastation caused by bird flu in late 2024.
Insight:
Consumer egg prices have been at record highs for three consecutive months, but there are signs that the trend may be reversing as supply improves and wholesale costs decrease.
As of April 4, wholesale egg prices in key markets like New York, California, and the Midwest have declined, as reported by the USDA. Stocks of conventional and cage-free eggs have increased, although the supply of organic shell eggs has slightly decreased.
Despite the drop in wholesale prices, it may take some time for these savings to be reflected in consumer prices. However, grocers are beginning to offer discounts as the egg supply stabilizes and consumer demand moderates.
Recent reports indicate that grocery shelves are once again fully stocked with a variety of egg choices, signaling a positive shift in the supply situation.
While farms have managed to rebuild the egg supply following the avian influenza outbreaks, chicken flocks remain depleted, with a 12.5% decrease in the caged flock as of March 1.
Allegations of price gouging have prompted investigations into the egg industry, with the largest supplier in the U.S., Cal-Maine, cooperating with a Department of Justice inquiry into the surge in consumer prices.