Egg costs are as soon as once more on the rise — and consultants warned to not count on aid till no less than subsequent yr.
Hovering demand coupled with decreased provide because of the ongoing avian flu outbreak has despatched the value of eggs surging by 8.5% month-over-month, in accordance with the Bureau of Labor Statistics.
In California, native restaurant homeowners are struggling to remain afloat as the common worth of a dozen eggs has spiked to almost $9 — up 70% in comparison with the yr earlier than.
In comparison with the earlier yr, costs are up almost 11%, reflecting each seasonal demand and lingering provide chain points.
Trade analysts attribute the spike partially to the vacation season, which historically sees elevated shopper demand for eggs utilized in baking and vacation meals.
Nevertheless, deeper structural components additionally play a job, notably the lasting influence of the avian flu outbreak that devastated American poultry farms in 2022 and 2023.
Though poultry manufacturing has rebounded considerably, it stays under pre-pandemic ranges, exacerbating provide constraints.
It should take time for egg producers to rebuild their flocks of chickens, so shoppers should be affected person earlier than costs begin to come down once more, in accordance with consultants.
Consumers ought to count on to see a “continuation of higher-than-usual egg prices,” Kevin Bergquist of Wells Fargo informed Yahoo Finance.
David Anderson, a professor of agricultural economics at Texas A&M College, mentioned that egg costs will solely begin to come down within the second half of this yr on the earliest.
“In some of these farms, not only do you lose your current producing chickens, you lose the next generation, which makes it even harder to rebuild total flocks,” Anderson informed Yahoo Finance.
Whereas rising costs pinch family budgets, they’ve confirmed advantageous for main egg producers like Cal-Maine Meals, the most important egg provider in america.
The corporate just lately reported vital revenue development, buoyed by increased costs and powerful demand.
Cal-Maine’s inventory has climbed greater than 30% over the previous yr as traders anticipate a windfall from increased egg costs.
Market situations are anticipated to stay favorable for producers in 2025, given ongoing provide challenges.
Specialists consider that avian flu outbreaks in different areas, coupled with elevated world demand for American-made eggs, will additional constrain provide.
As of January, farmers have culled over 133 million poultry, together with chickens, to manage the unfold of extremely pathogenic avian influenza.
As well as, rising feed prices and regulatory adjustments round cage-free egg manufacturing are more likely to preserve upward stress on costs.
“The current market dynamics reflect a perfect storm of factors that will sustain higher egg prices,” mentioned Emily Monroe, a senior analyst at AgriMarket Insights.
“Producers are reaping the benefits, but consumers will continue to feel the strain for the foreseeable future.”
