US egg prices have surged to a record high of US$6.23 (A$10) per dozen, defying predictions from former President Donald Trump and despite a decrease in wholesale prices. The latest figures from the Consumer Price Index indicate that consumers and businesses won’t receive immediate relief, especially as demand for eggs typically rises ahead of Easter on April 20.
Despite expectations of a price drop, experts note the decline in wholesale prices, which began mid-March, may not have had enough time to affect retail prices. Many grocery stores have not yet adjusted their prices downwards. Bird flu concerns previously drove up prices significantly in January and February, with over 30 million egg-laying chickens culled to contain outbreaks. Fortunately, only 2.1 million birds were slaughtered in March, and none were from egg farms.
In February, wholesale egg prices had already reached US$5.90 (A$9.49), following an earlier record of US$4.95 (A$7.96). While affected farms have been cleaning and replenishing their flocks, it will take about six months for new chickens to start laying eggs, leading to slower than anticipated recovery in egg production. As of March 1, around 285 million hens were laying eggs nationwide, down from over 315 million before the recent bird flu issues.
Additionally, the Agriculture Department sought to increase supply by importing nearly 4 million dozen eggs in February, but high prices led to the export of 7.6 million dozen eggs.
Rollins, the Agriculture Secretary, believes the current price increases are temporary and indicated a possible decline following the Easter surge. Earlier this week, Trump attempted to credit his administration for the recent decrease in wholesale prices while administrators pointed out that long-term effects from improved farm defences against bird flu would be more significant.
As prices continue to fluctuate, Datasembly reported that egg prices dropped slightly from US$5.98 (A$9.62) to US$5.51 (A$8.86) per dozen by the end of March, yet prices vary across the country. Notably, in Richmond, California, eggs were US$6.34 (A$10.20) at Walmart, while in Omaha, Nebraska, they were selling for US$4.97 (A$7.99).
The situation has sparked scrutiny towards Cal-Maine Foods, responsible for 20% of the nation’s egg supply, as it faces investigation by the US Department of Justice for potential price manipulation. The company has seen its net income triple, reaching US$508.5 million (A$817 million) compared to the previous year.
With high egg prices impacting consumers, many are opting for plastic eggs for Easter crafts, leading to a 20% increase in sales of craft egg kits compared to the previous year at Michaels, a leading craft retailer.