Egg Prices Dropped By 11% Due To Healthier Birds And Lower Demand
There's good news for chickens and the farmers who raise them, as well as for anyone who's had to shell out ridiculously high prices for eggs these past months. CNBC reported that egg prices have continued to fall since the average price for a dozen peaked in January 2023 at $4.82. That start-of-year sticker shock has prompted regular updates, and since, the news has remained positive. February saw a drop in price of 7%, and March prices declined by nearly 11%, according to the U.S. Bureau of Labor Statistics, which released new Consumer Price Index (CPI) data on Wednesday, April 12, 2023.
A host of reasons account for the drop in egg prices, according to CNBC, including relief from the avian flu outbreak that decreased egg production, lower fuel costs, a reduction in feed costs, and a drop in demand for eggs — even following Easter, which typically causes egg prices to rise a bit. Leading up to the holiday, the potato lobby even suggested that instead of decorating eggs, consumers decorate more affordable potatoes rather than spend a fortune on eggs. And there may be more good news ahead for those of us looking for relief from high food prices.
Egg prices are on the way down
Chief economist for Moody's Analytics, Mark Zandi speculates to CNBC that the decrease in egg prices, coupled with a decline in overall grocery prices (according to the most recent CPI data), might be a sign "the food inflation fever has been broken." And Brian Moscogiuri, global strategist for Eggs Unlimited, said we can expect to see egg prices continue to fall in grocery stores as retail prices catch up to the recent wholesale price crash. Insight from Gro Intelligence about the improved numbers of laying hens would appear to back this up; the firm estimates wholesale prices will go as low as $1.75 per dozen and retail prices should hover around the $2.00 mark by this summer. The recovering numbers of laying hens, along with reduced fuel and feed costs, are pushing egg prices in a direction that will certainly please restaurateurs and families struggling to operate on a budget.
Though Moscogiuri warned that another avian flu outbreak could happen anytime, particularly as the migration of wild birds peaks for the spring season, it's nice to have some good egg news to report.