Egg prices are soaring, driven by bird flu and high demand, with no relief in sight until next year.
California: Egg prices are on the rise again, and it looks like we won’t see any relief until next year. Experts are saying that soaring demand and a shortage caused by the bird flu outbreak are driving prices up.
In fact, the Bureau of Labor Statistics reported an 8.5% increase in egg prices just last month. Local restaurants are feeling the pinch too, with a dozen eggs costing nearly $9, which is a whopping 70% increase from last year.
Experts warn that these high prices might stick around for a while. The holiday season usually boosts demand for eggs, especially for baking and festive meals, but the ongoing avian flu crisis is making things worse.
Even though poultry production has bounced back a bit, it’s still not at pre-pandemic levels. It’s going to take time for farmers to rebuild their chicken flocks, so we’ll need to be patient before prices drop.
Kevin Bergquist from Wells Fargo mentioned that shoppers should brace themselves for “higher-than-usual egg prices” for the foreseeable future. Since January, over 133 million birds have been culled to control the spread of the avian flu.
David Anderson, an agricultural economics professor, believes we might not see any price drops until the second half of this year at the earliest. Losing both current chickens and their future offspring makes it tough for farms to recover.
While consumers are feeling the squeeze, big egg producers like Cal-Maine Foods are actually benefiting from these price hikes. Their stock has shot up over 30% this past year as they enjoy the profits from higher prices.
Market conditions are expected to stay favorable for producers through 2025, especially with ongoing supply issues and rising global demand for American eggs. The perfect storm of factors is keeping prices high, and it looks like consumers will continue to feel the strain.
