Remember when exorbitant egg prices took over the internet and the household staple became a rationed delicacy?
Well, the tides have finally turned, and high egg prices are starting to crack.
As of April 26, wholesale prices of eggs — the amount retailers pay to egg distributors –— were at $1.22. By last week, they descended to 94 cents for Midwest large eggs — the benchmark for eggs sold in their shells —according to Urner Barry, a market research firm.
These prices come as a stark contrast to the $5.46 record high in December, followed by a price point of $4.25 in January and $3.54 around Easter, according to Business Insider.
In total, prices have decreased by 78% in about five months.
Why were egg prices high?
Egg prices initially increased due to avian influenza, which severely impacted chicken farmers in 2022 and affected 58 million birds across 47 states, according to the U.S. Department of Agriculture.
Avian flu spreads quickly and has a mortality rate in chickens of 90% to 100%. To contain outbreaks, affected birds were slaughtered selectively as a precaution, causing egg scarcity as stocks were decimated, according to the Centers for Disease Control and Prevention.
Avian flu in Delaware
Delaware was one of the first states to be impacted and documented an outbreak in a commercial poultry operation on Feb. 22, 2022, according to Stacey Hofmann, a spokesperson for the Delaware Department of Agriculture.
About 1.4 million birds were affected last spring, and three farms were impacted by Highly Pathogenic Avian Influenza. In the fall, a resurgence of the virus impacted two backyard flocks in Kent County, Hofmann said.
All impacted farms from the spring are back in production, and Delaware producers still follow strict biosecurity protocols to keep the virus out of local flocks, according to the Agriculture Department.
Background on high Delaware egg prices:Wondering why egg prices are high in Delaware? Here’s everything you need to know.
Current status of egg production
Since bird flu outbreaks reported last year, there haven’t been new cases detected at commercial egg farms since Dec. 20, according to the USDA.
All impacted farms from the spring are back in production, and Delaware producers still follow strict biosecurity protocols to keep the virus out of local flocks, according to the state Department of Agriculture.
In early December, there were about 308 million hens laying eggs for consumption, down from about 328 million a year before, according to the USDA.
By April, the USDA documented 314 million layer hens were present.
Why egg prices are dropping
The decrease in bird flu has allowed egg supply to rebound, and a lag in demand has further contributed to the dip in egg prices.
Experts find that egg consumption decreases after the holidays before increasing closer to Easter, but with prices starting off the year as high as they did, demand was quelled more than usual.
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“Consumer demand for cartoned shell eggs over the past week remains lackluster and well below average as shoppers are seeing little price incentive at their local grocer to buy beyond their basic needs,” stated a USDA report from May 12.
Low demand has increased supply, causing “sharp declines” in wholesale egg prices that have stimulated a response from retailers, the report continues.
Egg demand isn’t expected to increase again until the back-to-school season, and in the meantime, consumers will continue to respond to grocery store prices and buy based on necessity.
Will egg prices continue to fall?
While wholesale prices have plummeted, it is up to retailers to decide how much they want to adjust prices.
Egg prices fell 1.5% for seasonal adjustments, according to the Bureau of Labor Statistics.
Retail prices are slower to pick up on wholesale trends, and retailers may be hesitant to slash prices if they fear future egg disruptions or are using the extra profits to recoup losses from initial bird flu disruptions and winter lags, experts said.
Although it might be some time before you’re back to routinely making deviled eggs or a smorgasbord of baked goods for your household, indulging in a daily breakfast accompanied by over-easy eggs seems like a safe bet.
Got a tip or a story idea? Contact Krys’tal Griffin at kgriffin@delawareonline.com.
