Due to the Spread of Avian Influenza
One Carton of Grade A Large Eggs Up 120% in One Year
[Asia Economy Reporter Haeyoung Kwon] The surge in egg prices due to the spread of avian influenza (AI) in the United States is hitting not only consumers but also small-scale bakeries hard.
According to the U.S. Department of Labor on the 22nd, egg prices in December last year rose 11.1% compared to the previous month. While the overall Consumer Price Index (CPI) decreased by 0.1% from the previous month, egg prices increased by double digits. Looking at the Department of Labor statistics, the price of a dozen Grade A large eggs jumped 120%, from $1.93 in January last year to $4.25 in December.
The rise in egg prices contrasts with the downward trend in other food prices recently. Last month, prices of major foods such as fruits and vegetables (-1.1%), beef (-0.1%), ham (-1.1%), pork (-0.2%), chicken (-0.6%), fish (-1.0%), milk (-1.0%), and bacon (-2.9%) mostly declined. Due in part to the increase in egg prices, overall food prices rose 0.2% compared to the previous month.
AI is cited as the main cause of the egg price increase. Since the outbreak of AI in the U.S. in February last year, more than 43 million chickens have died or been culled, significantly reducing supply.
Although the rise in egg prices has increased the burden on consumers' grocery bills, self-employed individuals and small businesses have also been significantly affected. In particular, the cost burden on small bakeries has surged. As it has become difficult even to purchase eggs in bulk, bakeries are contacting multiple distributors to barely secure eggs. Jennifer Shi, who runs Belmar Bakery in Texas, said, "Some distributors are limiting egg purchases," adding, "We have to inquire whether we can receive products from egg suppliers regardless of price."
Recently, many bakeries have raised product prices and reduced the number of items sold due to rising egg prices. Some bakeries are shortening employees' working hours to reduce labor costs and increasing sales of products without eggs or for vegetarians. Kara Bowling, who runs Kara Lynn Sweets, said, "We already have a vegan product line without eggs," adding, "If the situation worsens, we will have to take other measures."
Experts have not provided optimistic forecasts regarding egg prices, which have not calmed down despite the slowdown in U.S. inflation. Maro Ivarbru, a scientist at the Iowa State University Egg Industry Center, said, "It is difficult to predict when egg prices will fall," explaining, "It depends on supply and demand." He added, "If no new AI outbreaks occur and egg production gradually increases over the next few months, it could help the market," and emphasized, "Demand remains an important factor as well."
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