[The Epoch Times, January 12, 2023](Comprehensive report by Epoch Times reporter Marshawn Los Angeles) The soaring price of eggs in the market is causing panic among ordinary American families: We will soon be unable to afford eggs! Families with backyards are starting to consider raising chickens to avoid high egg prices.
Ms. Li from Los Angeles recently went to a Chinese supermarket to buy vegetables. She wanted to buy a few dozen eggs, but she was shocked when she saw the price: 20 large eggs for $11.99, and 12 large AA-grade white eggs for $7.99. Her friend wanted to buy from Sam’s, but when she arrived, she found that the eggs were out of stock.
A year ago, the price of eggs in California was about $2.35 a dozen. At the above prices, eggs have increased by 240%. On the whole, although the price of eggs in the United States is also rising, the selling price is still far lower than that in California. Wholesale eggs across the U.S. were $3.30/dozen last week, compared to $2.35/dozen a year ago.
In Temple City, Texas, a dozen eggs that cost $1.40 in 2019 are now more than $5. Elsewhere across the country, soaring egg prices have also become unbearable for ordinary residents. In order not to face the high price of eggs in the supermarket, in Chicago, a resident told the Associated Press that she and her neighbors began to seriously consider building chicken coops in the backyard of their house.
The rise in egg prices not only directly affects ordinary families, but also impacts chain companies such as McDonald’s. It is said that McDonald’s consumes 2 billion eggs every year. Soaring egg prices are bound to push up the costs of such catering chains, putting great pressure on people’s perception of prices.
The bird flu virus that started in January last year and made a comeback in September was the direct driver of this wave of soaring egg prices. Some economists pointed out that the bird flu outbreak in 2022 will be the deadliest bird flu outbreak in the history of the United States.
Bird flu generally arrives in spring and ends before summer. But this year’s bird flu broke out again after September, and intensified in October. The two waves of the epidemic have affected chicken flocks in 47 states and 369 counties across the United States. The total number of affected poultry in the United States reached 57.83 million, and 40 million laying hens died as a result. As of December 1 last year, the number of laying hens in the United States was 375 million, down 5% from the previous year. Egg production is also down, with 8.9 billion eggs produced in November, down 8.2 percent from a year earlier, according to the U.S. Department of Agriculture.
The reason why the price of eggs in California is much higher than that in the United States is related to the “No Cage Law” passed in California in 2018 and effective last year. This bill requires that from January 1 last year, the sale of eggs produced by caged chickens will not be allowed, which will increase the cost of raising layer chickens.
Analysis believes that the soaring price of chicken is also related to inflation. In an interview with CNBC, Brian Moscogiuri, global trade strategist at Eggs Unlimited, said that inflation is still widespread, combined with factors such as bird flu and holidays. Moscow Geely believes the mass die-off of laying hens coincides with peak holiday demand. During the festival, a large number of eggs are needed for cooking and making pastries, which also intensifies the demand for eggs.
When will egg prices rise?
The bird flu epidemic is still ongoing. It usually takes 5 to 6 months for laying hens to reach the peak of egg production; even if the epidemic is over now, it will take some time to fully restore production capacity.
Moscow Geely believes that after January, egg prices may fall as demand naturally decreases after the festival; at the same time, high egg prices themselves will also inhibit demand. He estimated that egg prices may pull back within a few weeks into January. But if a large-scale bird flu reappears, it may also disrupt the downward trend of egg prices.
There are also experts who hold different views. Egg prices won’t drop anytime soon as bird flu continues to kill layer hens, says Robert Tennant, an economist at Texas AM Central, in an interview with KCENTV; going into 2023 After that, high egg prices may continue for at least half a year. ◇
Editor in charge: Fang Ping