Poultry farmers across the country are on edge as highly pathogenic avian influenza is on the rise in the US, with more than 24 states affected as of early 2022.
Egg prices continue to skyrocket, putting even more pressure on consumers’ wallets.
In December, egg prices rose the most in Arizona, Nevada and New Mexico, according to retail firm Datasembly, which collects real-time data from more than 200 retailers across North America, including Walmart, Kroger and Target.
The 12-egg cartoon is up more than 64% in all of the states listed above, according to the retail data firm. That compares with an 18 percent increase in states like Oregon, California and Washington, according to the data.
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Cartons of eggs sit in a freezer at a supermarket on January 8, 2023 in Los Angeles, California. (And RYU/VCG via Getty Images / Getty Images)
In November, the prices of food products increased by 12 percent compared to the previous year, according to the Consumer Price Index. Egg prices, however, outperformed the overall index and showed the biggest annual jump of all food categories, rising 49.1% compared to last year.
The CPI figures for December, which will be released on Thursday, will offer a better insight into the increased price of eggs.
Still, the average price for a dozen Grade A eggs in November was $3.59, according to the Bureau of Labor Statistics. A year ago, the average price for the same cartoon was $1.72, according to data from the Ministry of Labor.
The spike in costs has been attributed to rising labor, fuel and feed costs combined with a resurgence of bird flu that has disrupted production.
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Red Star chickens lie in their coop Tuesday, Jan. 10, 2023, at the historic Wagner Farm in Glenview, Ill. Anyone buying a dozen eggs these days will have to be prepared to pay. This is because a prolonged outbreak of bird flu, combined with a large increase in f (AP Photo/Erin Hooley/AP Images)
Bird flu
Egg farmers were hit the hardest by bird flu, which affected 58 million birds last year. More than 43 million of those birds, all of which were killed to control the virus, were egg-laying hens.
“Recurrence of HPAI [Highly Pathogenic Avian Influenza] outbreaks continued to disrupt normal production and market patterns in November, negatively impacting export business,” the US Department of Agriculture (USDA) said in a report last week.
In its report, the USDA said that record high egg prices have begun to decline, although “it will be some time before this is reflected in the case of dairy products.”
MARKETS MAY BE UNDERESTIMATING THE THREAT OF HIGH INFLATION, WARNS BLACKROCK
| Ticker | Security | Last | To change | Change % |
|---|---|---|---|---|
| CALM | CAL-MAINE FOODS INC. | 52.50 | -1.11 | -2.07% |
Cal-Maine Foods, the largest U.S. producer and distributor of fresh shell eggs, said last month that it is closely monitoring the current outbreak of HPAI, which was first detected in commercial flocks in the U.S. in February 2022.
“The current HPAI outbreak has surpassed the previous outbreak in 2014-2015 in terms of the number of infected chickens in the US, and HPAI continues to circulate in wild bird populations in the US and abroad,” the company said in a press release.
Cal-Maine noted that as of December 28, 2022, there were no positive HPAI tests at any of its owned or contracted manufacturing facilities.
“The company believes that the HPAI outbreak will continue to put downward pressure on the overall egg supply, and the duration of those effects will depend in part on the timing of the recovery of the U.S. laying hen flock,” Cal-Maine said.
The company reported record quarterly sales, which rose 110% to $801.7 million for the fiscal second quarter ended November 26, 2022.
Net income was a record 198.6 million dollars.
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Half-empty egg shelves are seen at a supermarket on January 8, 2023 in Los Angeles, California. (And RYU/VCG via Getty Images / Getty Images)
For now, “eggs remain a price competitive protein with other animal proteins.” USDA said.
This comes at a time when demand for the product remains high.
“As the new year begins, more than a few consumers are looking to change their food choices to support freshly minted healthier lifestyle resolutions, and eggs remain a popular option,” the agency added.
The Associated Press contributed to this report.