Egg prices hit record high despite drop in wholesale costs

In March 2023, the price of a dozen eggs in the United States soared to a record high of $6.23, as reported by the Bureau of Labor Statistics. This increase came in the wake of a significant drop in wholesale egg prices and with no reported outbreaks of bird flu on egg farms during that period. The bird flu outbreak had previously caused drastic spikes in egg prices in January and February, leading to the culling of over 30 million egg-laying chickens. Consumers faced soaring prices, with some reporting costs as high as $20 for a dozen in certain areas. The continuing high demand for eggs, particularly ahead of the Easter holiday, has been a crucial factor in keeping prices elevated. Experts had anticipated a drop in retail egg prices corresponding with the decrease in wholesale prices; however, this did not materialize in March as the retail consumer prices remained high due to lagging adjustments following the mid-month drop in wholesale costs. Agricultural economist Jada Thompson noted that there may not have been sufficient time for the average retail prices to reflect the fall in wholesale rates. The bird flu outbreak initiated in 2022 has had lasting implications on the egg supply chain. Since the onset of this outbreak, millions of birds, primarily chicken layers, were slaughtered to manage the spread of the disease. By March 2023, approximately 285 million hens were reported to be laying eggs in the U.S., a decline from over 315 million prior to the outbreak. Industry attempts at recovering from the impacts of bird flu have been mixed, with some farms beginning to resume egg production after implementing sanitation measures and new flock integrations. As April 2023 approached, the USDA highlighted that the supply chain had begun to stabilize, with grocery stores showing improved inventory levels. Despite soaring prices over the previous year, many families still participated in traditional Easter activities involving eggs. Industry leaders expressed hope that prices would eventually decrease, especially if consumer demand begins to normalize post-holiday. The rise in prices also drew scrutiny and sparked discussions regarding potential market manipulations and investigations into price-setting practices in the egg industry.