Key Points:
- The USDA reported that negotiated wholesale prices for graded loose eggs have been decreasing due to the absence of significant outbreaks of bird flu in March.
- Demand for shell eggs has dropped as grocers are not promoting egg purchases to avoid shortages.
- Despite positive trends in the egg supply chain, grocer’s egg prices have not yet reflected these changes, and demand is expected to remain low.
Insight:
Grocers have been able to increase their stock of shell eggs as the supply becomes more available. The volume of eggs processed last week grew by 6.5%, with the overall shell egg inventory increasing by over 5%.
The national inventory of large class shell eggs saw an 8.5% increase. It remains uncertain if these conditions will continue and if pricing will improve before the expected rise in consumer demand for Easter.
Egg prices were almost 59% higher in February compared to the previous year, with a 12.5% increase on a month-to-month basis. U.S. Secretary of Agriculture Brooke Rollins announced a $1 billion strategy to address the bird flu outbreak and lower egg prices.
However, challenges remain as the USDA struggles to rehire employees who were previously working on the bird flu outbreak but were laid off during the Trump administration.