Egg prices crashed 11% in March — and more relief may follow

Egg costs fell by nearly 11% in March, the U.S. Bureau of Labor Statistics stated Wednesday, following a 7% decline in February and delivering aid from record-high costs over the winter.

The lower is basically resulting from a restoration in egg manufacturing and weaker shopper demand, stated Brian Moscogiuri, international commerce strategist at Eggs Limitless, an egg provider.

Egg costs rose greater than these of virtually every other shopper good or service final 12 months, in share phrases. In an indication of the occasions, comic Trevor Noah requested popstar Taylor Swift on the Grammy Awards in February if her followers may assist scale back the excessive worth of eggs.

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Shoppers paid $4.21 for a dozen Grade A, massive eggs in February, on common, in accordance with most up-to-date federal knowledge. That is greater than double the value in February 2022, when a dozen eggs value $2, however is down 61 cents from $4.82 in January 2023, which was a report excessive.

The U.S. suffered its deadliest outbreak of chicken flu in historical past in 2022. The illness — which is extremely contagious and deadly amongst birds — killed tens of tens of millions of egg-laying hens.

There hasn’t been a confirmed case at business egg farms since December, and provide has rebounded, Moscogiuri stated.

Client demand has additionally been comparatively weak, he added. Egg costs sometimes rise main as much as Easter, typically the second-strongest demand season behind the winter holidays; this 12 months, the non secular vacation fell on April 9.

However Easter 2023 was considerably of a “dud,” Moscogiuri stated. To cut back prices, adorning Easter potatoes caught on as an alternative choice to dying Easter eggs. Greenback Tree, a low-cost retail chain, pulled eggs from its retailer cabinets in March till later this 12 months resulting from excessive costs.

Shoppers may even see costs fall additional at grocery shops. Wholesale egg costs have “crashed” in latest weeks, Moscogiuri stated.

“We’re seeing among the least expensive egg costs within the final 52 weeks now,” he stated.

Retail worth traits typically observe the wholesale market however lag by 4 to eight weeks, stated Angel Rubio, senior analyst at Urner Barry, a market analysis agency that makes a speciality of the wholesale meals business.

Egg costs declined amid a broad pullback in grocery costs final month. The meals at residence worth index declined by 0.3% in March, the primary lower since September 2020, in accordance with the BLS.

Decrease diesel costs — an necessary part in transporting meals to shops — and easing snags in meals provide chains have helped contribute to decrease general grocery costs, stated Mark Zandi, chief economist of Moody’s Analytics.

“It indicators the meals inflation fever has been damaged,” Zandi stated of the CPI knowledge issued Wednesday.

Egg costs had additionally been nudged upward by rising prices for key animal-feed inputs like corn and soybeans, economists stated. These costs have declined from near-record highs hit in 2022.  

Egg costs may but be pressured by future outbreaks of chicken flu. The subsequent few months characterize peak migratory season for wild birds; regardless of ample funding by farmers in preventative illness measures over the previous 12 months, there are nonetheless considerations, Moscogiuri stated.