Poultry farmers across the country are on edge as highly pathogenic bird flu is on the rise in the US, affecting more than 24 states since early 2022.
Egg prices continue to skyrocket, putting even more pressure on consumer wallets.
Egg prices rose the most in December in Arizona, Nevada and New Mexico, according to retail data company Datasembly, which collects real-time data from over 200 retailers across North America, including Walmart, Kroger and Target.
A batch of 12 eggs rose over 64% in all of the above states, according to the retail data company. That compares to the 18% increase seen in states like Oregon, California and Washington, according to the data.
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Cartons of eggs sit in a freezer at a supermarket on January 8, 2023 in Los Angeles, California. (I RYU/VCG via Getty Images/Getty Images)
According to the consumer price index, food prices rose by 12% in November compared to a year earlier. Egg prices, however, outperformed the overall index and showed the highest annual jump across all food categories, rising 49.1% year-on-year.
December CPI numbers, to be released on Thursday, will provide a better insight into elevated egg prices.
Still, the average cost of a dozen Grade A eggs in November was $3.59, according to the Bureau of Labor Statistics. A year ago, the average cost for the same cartoon was $1.72, according to Labor Department data.
The rise in costs is attributed to rising labour, fuel and feed costs combined with recurring outbreaks of avian influenza that have disrupted production.
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Red Star chickens sleep in their coop at Historic Wagner Farm in Glenview, Illinois on Tuesday, January 10, 2023. Anyone who buys a dozen eggs these days has to be prepared to pay. That’s because an ongoing outbreak of bird flu, combined with a rising f (AP Photo/Erin Hooley / AP Images)
bird flu
Egg farmers have been hit hardest by bird flu, which affected 58 million birds last year. More than 43 million of those birds, all killed to fight the virus, were egg-laying chickens.
“Recurring HPAI [Highly Pathogenic Avian Influenza] Outbreaks continued to disrupt normal production and marketing patterns into November, negatively impacting export business,” the US Department of Agriculture (USDA) said in a report last week.
In its report, the USDA said record-high egg prices have gradually eased, although “it will take time for this to be reflected in the dairy case.”
MARKETS MAY UNDERESTIMATE THE RISK OF HIGH INFLATION, BLACKROCK WARNS
| ticker | security | Last | To change | To change % |
|---|---|---|---|---|
| QUIET | CAL-MAINE FOODS INC. | 52.50 | -1.11 | -2.07% |
Cal-Maine Foods, the largest U.S. producer and distributor of fresh shell eggs, said last month it was closely monitoring the current outbreak of HPAI, first detected in commercial flocks in the U.S. in February 2022.
“The current HPAI epidemic has surpassed the previous outbreak of 2014-2015 in terms of the number of chickens affected in the United States, and HPAI continues to circulate throughout the wild bird population in the United States and abroad,” the company said in a press release.
Cal-Maine noted that as of December 28, 2022, none of its owned or contracted manufacturing facilities have had positive HPAI tests.
“The Company believes that the HPAI outbreak will continue to put pressure on overall egg supply, and the duration of this impact will depend in part on the timing of US layer flock replenishment,” Cal-Maine said.
The company reported record quarterly revenue of $801.7 million, up 110% for the fiscal second quarter ended November 26, 2022.
Net income was a record $198.6 million.
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Half-empty shelves of eggs are seen at a supermarket in Los Angeles, California on January 8, 2023 (I RYU/VCG via Getty Images / Getty Images)
For now, eggs “remain a competitively priced protein compared to other animal proteins.” said the USDA.
This comes at a time when demand for the product remains high.
“As we enter the new year, quite a few consumers are trying to change their dietary habits to support freshly made resolutions for a healthier lifestyle, and eggs remain a popular option,” the agency added.
The Associated Press contributed to this report.