U.S. egg prices fall for the first time in months but remain near record highs
In April, U.S. retail egg prices fell for the first time in months, dropping to an average of $5.12 per dozen from a record $6.23 in March, marking the steepest monthly decline since 1984. Despite this decrease, prices remain significantly high due to a persistent bird flu outbreak that has decimated egg-laying hen populations. The outbreak has resulted in over 169 million birds being culled since 2022, impacting egg supply and prices. Efforts to stabilize prices include increased egg imports and a $1 billion U.S. Department of Agriculture investment to enhance biosecurity measures. Meanwhile, an investigation is underway into Cal-Maine Foods, the largest U.S. egg producer, which has seen its profits soar amid the ongoing crisis.
Context:
In April, U.S. retail egg prices fell for the first time in months, dropping to an average of $5.12 per dozen from a record $6.23 in March, marking the steepest monthly decline since 1984. Despite this decrease, prices remain significantly high due to a persistent bird flu outbreak that has decimated egg-laying hen populations. The outbreak has resulted in over 169 million birds being culled since 2022, impacting egg supply and prices. Efforts to stabilize prices include increased egg imports and a $1 billion U.S. Department of Agriculture investment to enhance biosecurity measures. Meanwhile, an investigation is underway into Cal-Maine Foods, the largest U.S. egg producer, which has seen its profits soar amid the ongoing crisis.
Dive Deeper:
U.S. retail egg prices experienced a notable decrease in April, with the average price for a dozen Grade A eggs falling to $5.12, down from the March peak of $6.23, signifying the first price drop since October 2024 and the sharpest decline since March 1984.
Despite the recent price drop, the average cost of eggs remains near record highs, primarily due to a severe outbreak of bird flu that has led to the culling of over 169 million birds, severely affecting egg-laying hen populations and thus supply.
David L. Ortega, a food economics and policy professor, anticipates further price reductions in the coming months due to decreased consumer demand post-Easter and fewer recent bird flu outbreaks, though the virus's future trajectory remains uncertain.
The U.S. Department of Agriculture is actively investing $1 billion to bolster farmers' biosecurity measures against bird flu, while also increasing egg imports from countries like South Korea, Turkey, and Brazil to mitigate supply issues.
The antitrust division of the U.S. Department of Justice is scrutinizing Cal-Maine Foods, which supplies about 20% of America's eggs, due to its significant profit surge during the egg price crisis, with the company's net income tripling to $508.5 million in a recent quarter.