"Egg Prices Are Rising, This Time It's Different"
As egg prices soar in the United States, bakeries are facing pressure to raise their prices.
On the 23rd (local time), CNN reported that "due to the culling of tens of millions of chickens caused by avian influenza last year, egg prices have surged nationwide," and many bakeries are considering price increases.
According to the U.S. Department of Agriculture, last year, the highly pathogenic avian influenza (H5N1) spread across the United States, resulting in the culling of more than 40 million laying hens. Consequently, wholesale egg prices last month rose 186% compared to the same period last year, marking the fourth highest annual price increase since 1992.
Scott Auslander, general manager of the Washington DC-based bakery Bread First, said that fluctuations in egg prices are not new, but this time is different, noting, "Suppliers say they do not know when egg prices will go down." He stated that he is spending more than twice as much on egg purchases compared to a year ago and has raised prices on one-third of his products, including the popular egg-heavy Messy Egg Sandwich, last week.
In addition to raising prices, bakeries are also exploring alternatives such as using egg substitutes. An owner of a bakery in Long Island, New York, said they plan to increase product prices within the next few weeks and are also considering using egg substitutes.
Charles Lindsey, a professor at the University at Buffalo School of Management, advised that price increases generally lead to losing customers, making it a difficult decision for businesses. He emphasized that effectively communicating the reasons for price hikes can help defend against customer loss.
Kerry Francis Bradley, co-operator of D Light Cafe & Bakery in Washington DC, said that if prices need to be raised, communication will be important, such as posting on social media every time prices change.
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