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"Renting Hens" Severe Eggflation... Egg Thieves on the Rise

Egg Shortage in the U.S. Due to Avian Influenza Outbreak
Households Turn to Hen Rentals for Self-Sufficiency

"Renting Hens" Severe Eggflation... Egg Thieves on the Rise On the 16th (local time), egg cartons piled up in a restaurant in Chicago, Illinois, USA. Photo by AP and Yonhap News.

Egg prices in the United States have nearly doubled in one year, emerging as a major driver of inflation. The primary cause is analyzed to be the severe supply shortage due to the culling of nearly 150 million chickens since 2022 because of avian influenza. In the U.S., the number of households raising hens for self-sufficient egg production is increasing, leading to the emergence of 'hen rental services,' and egg thefts are rampant in various places, becoming a social issue. Although the Donald Trump administration, which prioritized price stabilization as a top national agenda, has proposed several measures, it is expected to be difficult to increase egg supply in the short term.

Eggs Become a Major Cause of Inflation... Prices Double in One Year
"Renting Hens" Severe Eggflation... Egg Thieves on the Rise

Egg prices in the U.S. have nearly doubled compared to last year. According to the U.S. Bureau of Labor Statistics, the average monthly price of a dozen eggs last month was $4.95 (approximately 7,136 KRW), a 96.4% increase from $2.52 a year ago. The Bureau explained, "The rise in egg prices in January accounts for two-thirds of the increase in food prices within households."


The actual price surge felt by consumers is analyzed to be even greater. The Wall Street Journal (WSJ) reported, "Some retailers, including supermarkets and large distributors, are purchasing eggs at prices above the average, over $7," adding, "There are regional differences, so some consumers in certain areas have to pay even higher amounts."


With Easter, the period of highest annual egg demand in the U.S., approaching in April, egg demand is expected to increase further, raising concerns that the price surge will intensify. The U.S. Department of Agriculture (USDA) forecasts, "Egg prices may rise an additional 20% this year."

Aftermath of the 2022 Avian Influenza Outbreak... 158 Million Chickens Culled
"Renting Hens" Severe Eggflation... Egg Thieves on the Rise AP·Yonhap News

The main cause of the egg price surge in the U.S. is the avian influenza outbreak that has been ongoing since 2022. Due to the spread of avian influenza, over 148 million laying hens have been culled in the U.S. over the past two years, disrupting egg supply. According to the USDA, egg production in the U.S. decreased by 4.2% last year compared to the previous year.


The avian influenza virus (H5N1), which causes avian flu, continues to spread, and 22 million laying hens were culled just last month. The avian influenza virus primarily spreads through poultry, but mutations have appeared, causing transmission to livestock such as cattle and even humans. On the 6th of last month, a case of death due to H5N1 virus infection was reported in Louisiana, U.S.


There are concerns that avian influenza may have spread to more areas than expected. According to a report released on the 13th by the U.S. Centers for Disease Control and Prevention (CDC), traces of the virus were found in veterinarians from regions where H5N1 has not yet spread. The CDC surveyed 150 veterinarians active in the dairy industry across 46 U.S. states and found evidence of virus infection in three veterinarians working in areas where H5N1 had not been detected. The CDC stated, "The areas where avian influenza virus has spread are expected to be far more extensive than officially reported," and "More testing for avian influenza infection should be conducted among asymptomatic dairy workers and animal caretakers."

Hen Rentals and Egg Theft Rampant... Trump Administration Ponders Solutions
"Renting Hens" Severe Eggflation... Egg Thieves on the Rise On the 27th of last month (local time), the egg display shelves were completely empty due to supply shortages at a grocery store in Denver, Colorado, USA. Photo by AP and Yonhap News.

Due to the surge in egg prices caused by avian influenza, more U.S. households are raising chickens at home to be self-sufficient in eggs. According to the American Pet Products Association, 11 million U.S. households raised chickens last year, nearly double the 5.8 million households in 2018.


Hen rental services have even emerged. This service rents 2 to 4 hens along with chicken feed and feeding dishes to households for 5 to 6 months, and some companies install chicken coops for first-time chicken owners. Although the short-term costs of raising chickens are high, the expectation that the egg price surge will continue long-term is increasing the number of people wanting to raise chickens themselves.


Thieves who specialize in stealing eggs rather than money are also rampant. According to The Washington Post, on the 1st, 100,000 eggs were stolen from a grocery company’s transport trailer in Greencastle, Pennsylvania. On the 5th, a thief broke into a restaurant warehouse in Seattle, Washington, and stole 540 eggs.


The egg crisis is causing various social problems, and the Trump administration is also considering countermeasures. Since curbing rapid price increases was a core promise of President Trump, the political burden from the egg price surge is growing. The WSJ pointed out, "Inflation, which helped Trump win the presidency, has now become his new problem."


The Trump administration states it will focus all efforts on effectively preventing the spread of avian influenza and increasing egg production. Kevin Hassett, Chairman of the White House National Economic Council (NEC), said on the 16th, "We are collaborating with the government’s top scientists as well as experts worldwide," and explained, "The Biden administration spent billions of dollars randomly culling chickens, leading to the current situation. Alternatives such as biosecurity measures and medications should have been pursued before indiscriminate culling."


© The Asia Business Daily(www.asiae.co.kr). All rights reserved.


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