new york
CNN
–
The lack of eggs may have finally cracked.
The prices of wholesale eggs fell to $3.00 per dozen last week, the US Department of Agriculture reported in its weekly Egg Market report. This is down 9% from the previous week.
“Grocery store supply has improved significantly in recent weeks, and consumers are once again looking at fully stocked shelves and enjoying a variety of options without a purchase limit,” the report elaborated.
This is welcome news for consumers. The lack of eggs and higher prices have been worrisome for several months. The egg price in February reached its highest level in 10 years, selling for $5.90, according to the Bureau of Labor Statistics.
The egg market appears to be rising. Avian flu killed 30 million egg-laying birds this year, but the outbreak has been contained.
Bernt Nelson, an economist with the American Farm Bureau Federation, said the price decline was primarily due to a sharp decline in bird flu cases, affecting only 2.1 million birds in March this year, with 23 million in January and about 13 million in February.”
“American poultry farmers are working to enhance biosecurity and they will continue to work to protect their flocks,” Nelson said.
Demand also declined as consumers became tired of paying higher prices and gave suppliers the opportunity to accumulate supply. Low prices continued.
“I think the story is now over on the eggs. We’ve got a lot of eggs in,” said Stew Leonard Jr., owner of the Northeast Stew Leonard grocery chain.
Leonard says he sold eggs for $10 per dozen in December, but today’s eggs are retailing in the store for $5.99.
“We’ve returned to low-priced eggs again. It seems there’s a good supply,” he said. “I spoke with farmers in Pennsylvania. There are a lot of farms in Pennsylvania that have egg-laying hens. They’re relocating stocks again. Production seems to be backed up.”
But despite the bright spots, according to the USDA, it can take weeks for wholesale prices to be translated into most grocery store shelves.
“Only now, shelves prices are beginning to slowly fall,” the Agriculture Ministry report said. “The demand from egg product manufacturers is almost light as many people were able to utilize the dull carton market to build supplies sufficiently to raise production levels to three months’ heights.”
And grocery stores are still limiting the amount customers can buy. Costco says it still limits egg purchases to three per customer. One Whole Foods in downtown Manhattan had signs restricting the purchase of eggs, despite being on the shelf.
President Donald Trump praised the fall in prices in recent weeks, saying, “We’ve lost it.” He also touts the administration’s billion-dollar investment to combat avian flu. Wholesale egg prices began to fall in the final week of February, as USDA plans to combat illness were announced.
The rise in egg prices may have slowed, but it is still historically high. According to the consumer price index, egg prices in February have risen 10.4% from January, up 58.8% compared to a year ago.
