The wholesale price of eggs has been reduced abruptly since early March after flying for months, but it may take a few weeks for grocery shoppers to see the decline.
The rates of wholesale eggs, which retailers pay for egg supply, have fallen on a national average of just over $ 4 for twelve large white eggs, from a top of over $ 8 in late February, according to agricultural data released.
But because eggs usually have a four -week life, it may be the end of March before retail prices begin, said Jeremy Horpedahl, Associate Professor of Economics at the University of Central Arkansas. Some stores, he added, may not reduce prices until they sell their current stock.
Economists have said that the reduction in wholesale prices, which are still above the long -term average, were probably powered by a combination of factors: the influenza of birds falling under control, the weaker demand for consumer, upgraded production decisions. The Department of Agriculture noted that so far there have been no significant outbreaks of bird flu and economists say that any new home could push prices again. The virus has forced egg producers to tighten tens of millions of hens since late last year.
In February, the retail price of eggs increased by 10.4 % since the previous month, continuing a monthly climb, according to data from the office statistics office last week.
Economists have noted that prices may not be reduced evenly across the country. Areas with competitive grocery stores may see egg prices fall faster, Mr Horpedahl said, while those dominated by a single chain – with power keeping prices high for longer – may not be. Retail prices may also depend on grocery chain strategies, with some choosing to keep prices lower to attract customers to stores.
“They can go through wholesale prices on us entirely, or not at all, or somewhere in between,” said David Anderson, a professor of finance and business at Center College in Danville, Ky.
President Trump, who reducing grocery prices as a key part of his campaign, jumped to the tendency of wholesale prices, citing a fall in the Ministry of Justice last week. At the same time, his sweeping invoices have caused concern about raising prices for a number of products, including staple grocery stores.
The price of eggs and other grocery stores created anxiety during Biden’s administration, making the top concern between voters before the 2024 elections. A outbreak of bird flu in 2022, along with the increase in fuel costs and fuel costs, Up to about $ 5 in the dozen in their climax. Although the rise in egg prices was less than the recent increase, it came when total inflation was higher, the pressure on the household budgets.
Egg producers have accused the spread of bird flu of stricter supplies. United Egg producers, the industry’s trade association, noted that the industry had lost more than 40 million spawning hens in 2024 and 31 million in just the first two months of this year as the virus accelerated.
Mr Anderson said the bird flu has hit the offer in “dramatic ways”. But at the same time, he added: “Industry can see the bird flu epidemic as a cover for additional price increases that are not necessary.”
“Part is that they really have to deal with a crisis,” he said. “Part of it may be,” do we have some coverage to keep our prices artificially high? ”
The Ministry of Justice is in the early stages of an antitrust investigation, examining whether large egg producers have common information on pricing and supply that contribute to a rise in prices. Some legislators and defense groups had previously requested federal regulators to investigate industry pricing practices.
