NEW YORK — Egg costs once more reached a file excessive in February, because the fowl flu continues to run rampant and Easter and Passover method.
The most recent month-to-month Shopper Worth Index confirmed a dozen Grade A eggs value a median of $5.90 in U.S. cities in February, up 10.4% from a yr in the past. That eclipsed January’s record-high value of $4.95.
Avian flu has pressured farmers to slaughter greater than 166 million birds, principally egg-laying chickens. Simply because the begin of the yr, greater than 30 million egg layers have been killed.
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If costs stay excessive, will probably be third yr in a row shoppers have confronted sticker shock forward of Easter on April 20 and Passover, which begins on the night of April 12, each events during which eggs play distinguished roles.
The value had constantly been under $2 a dozen for many years earlier than the illness struck. The U.S. Division of Agriculture expects egg costs to rise 41% this yr over final yr’s common of $3.17 per dozen.
However there could also be gentle on the finish of the tunnel. The USDA reported final week that egg shortages are easing and wholesale costs are dropping, which could present aid on the retail facet earlier than this yr’s late Easter, which is three weeks later than final yr. It mentioned there had been no main fowl flu outbreak for 2 weeks.
“Customers have begun to see shell egg choices within the dairycase changing into extra dependable though retail value ranges have but to regulate and stay off-putting to many,” the USDA wrote within the March 7 report.
David Anderson, a professor and extension economist for livestock and meals advertising and marketing at Texas A&M College, mentioned wholesale figures dropping is an effective signal that costs might go down as consumers react to the excessive costs by shopping for fewer eggs.
“What that ought to inform us is issues are easing somewhat bit by way of costs,” he mentioned. “So going ahead, the subsequent CPI report might very nicely point out falling egg costs.”
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Nonetheless, he does not count on lasting modifications till fowl inventory will be replenished and manufacturing will be changed.
“Document excessive costs is a market sign to producers to provide extra, but it surely takes time to have the ability to produce extra, and we simply haven’t had sufficient time for that to occur but,” he mentioned. “However I do suppose it’s going to occur. But it surely’s going to take some extra months to get there.”
Emily Metz, president and CEO of the American Egg Board, mentioned wholesale costs dropping is sweet information, however famous that elevated demand for Easter might drive a brief enhance in costs.
“As well as, egg farmers are carefully watching spring migration of untamed birds, recognizing that wild birds are a number one reason for the unfold of this virus and pose an awesome and ongoing risk to egg-laying flocks,” she mentioned.
Advocacy teams and others have additionally referred to as for a probe into whether or not egg producers have used the avian flu to cost gouge. However egg producers say the avian flu is solely behind the elevated costs.
In the meantime, eating places have added surcharges and made different modifications to offset the price of eggs.
The Trump administration has unveiled a plan to fight fowl flu, together with a $500 million funding to assist farmers bolster biosecurity measures, $400 million in further help for farmers whose flocks have been impacted by avian flu, and $100 million to analysis and doubtlessly develop vaccines and therapeutics for U.S. rooster flocks, amongst different measures. However it is going to doubtless take some time for that plan to make an impression.
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