Egg Prices Are Dropping Faster Than Experts Anticipated
Finally, some encouraging news on the inflation front. According to a May 22 USDA market report, egg prices have fallen faster than experts expected. As of this writing, producers are paying an average of $0.84 for a dozen eggs — a considerable reduction from their peak price of $5.46.
Kevin Bergquist, the Agri-Food Institute sector manager of Wells Fargo, told Food Dive that the numbers surprised him. His reaction is presumably shared by members of the USDA, who recently projected that egg prices this month would fall by a scant 24.9% from this time last year. "The recent rapid decline in egg prices has likely been a bit of a surprise when looking at how far and how fast egg prices have dropped for producers in the last several weeks," he said.
Here's how one of the most inflated food products of 2022 unexpectedly crossed the road to the affordable side.
Flocks are recovering from a historic bird flu outbreak
The massive avian flu that swept the country in 2022 was a central cause of eggs' record-high prices. The outbreak, which originated in wild birds, killed an average of 52.7 million animals, droves of which were egg-laying hens, driving up production costs.
According to the Centers for Disease Control and Prevention, there haven't been any recorded outbreaks in 2023. Flocks are rebuilding, and egg production is going back up, yielding lower wholesale prices. Brian Moscogiuri, a global trade strategist for Eggs Unlimited, told CNBC that the national egg supply is also getting a break from lower consumer demand, which is typical for this time of year. He added that "prices have collapsed beyond the expectation of the industry."
If all goes well, it's only a matter of time before shoppers might see those wholesale price drops reflected on their grocery bills.