Analyst: Wholesale Egg Prices Plunge, Shoppers May Soon See Relief

• The price for wholesale eggs has dropped over 40% since late February.
• This reduction occurs as we've seen a break from significant bird flu outbreaks since early March and a decline in consumer demand, factors that have contributed to an initial recovery of the country’s egg supply.
• In February, retail egg prices reached an all-time peak. However, it remains uncertain as to how quickly, and by how much, these prices will decrease.

Wholesale egg prices have dropped considerably over the past few weeks, a trend that could shortly provide respite for shoppers. shell-shocked by record-high prices At the supermarket this year.

The speed at which—and the extent to which—retail prices will decrease remains uncertain, according to experts.

On Friday, wholesale prices fell to $4.83 per dozen, marking a 44% decrease from their high of $8.58 per dozen on February 28, as reported by Expana, a company monitoring agricultural product costs.

The decline is occurring as we see a break from significant bird flu outbreaks since early March and a reduction in consumer demand, factors that have contributed to an increase in the country’s egg supply, reports the U.S. Department of Agriculture. market analysis published Friday.

Prices have "tumbled," according to Karyn Rispoli, an egg market analyst and the managing editor at Expana.

Rispoli noted in an email that market forces are exerting "intense pressure" on wholesale prices to decrease even more.

Retail prices reached an all-time peak.

In February, consumers paid an average of $5.90 for a dozen Grade A extra-large eggs, marking a new peak as per data from the U.S. Bureau of Labor Statistics. data Retail prices have surpassed previous records, reaching $4.82 per dozen in January 2023, almost doubling compared to the price from last year.

Prices skyrocketed due to a fatal avian influenza outbreak in the U.S., resulting in the deaths of millions of egg-laying hens and reducing egg supplies, as stated by agricultural economists and market analysts. Additionally, the U.S. Department of Justice reported this issue. opened an antitrust investigation into the pricing and supply practices of major producers.

However, bird flu outbreaks seem to have tapered off in March, at least for now.

"The decrease in bird flu outbreaks is resulting in better supply availability, causing wholesale market prices to sharply decline over the last week," according to the USDA.

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Consumers, dissuaded by high prices and purchase restrictions imposed by many grocers , have also been buying fewer eggs, helping to ease supply shortfalls, Rispoli said.

Households also stockpiled eggs because they feared prices would keep climbing — a flashback of sorts to consumer behavior witnessed in the early days of the Covid-19 pandemic — meaning there isn't an immediate need for them to replenish supply, she added.

Consumers still 'feeling the peak market'

While there have been some early signs When it comes to reducing prices, it remains uncertain how quickly – and by how much – consumers might see some benefit, according to experts.

For one, there's generally a lag of at least two to three weeks between a change in wholesale costs and subsequent retail pricing — meaning consumers are still largely "feeling the peak market when they go to buy eggs," Rispoli said.

Plus, retailers ultimately choose "how closely they want to track wholesale prices," she said.

Egg demand is also likely to stay elevated as the Easter holiday, which falls on April 20 this year, approaches, according to Kevin Bergquist, an egg analyst at the Wells Fargo Agri-Food Institute.

Bergquist stated in a March market analysis that egg prices are expected to stay significantly fluctuating for the foreseeable future, yet they will be at an unusually elevated level. In the coming months, high egg prices are anticipated to persist.