• Source:JND

Egg prices in the US have soared in recent months due to an outbreak of bird flu, which has severely impacted poultry flocks. The highly pathogenic avian influenza (H5N1) has devastated egg-laying hens, leading to supply shortages and skyrocketing prices. This strain of bird flu, which first appeared in Europe in 2020, has since spread to the US, Africa, the Middle East, and Asia, causing the largest recorded outbreak in the US poultry industry.

Grocery store prices for eggs have varied significantly across the country, with some of the highest prices observed in California cities. However, amid the price surge, Trader Joe's has consistently offered some of the lowest egg prices among major grocery chains. Consumers have struggled with fluctuating costs as supply constraints put pressure on the market.

US Government’s Response To Egg Shortage

To address the severe egg shortage, the US government has turned to international suppliers, seeking exports from European countries such as Germany, Italy, Poland, and Sweden. However, the ability of these nations to supply eggs to the US is limited due to their own avian flu outbreaks and the increasing domestic demand ahead of Easter. Additionally, import regulations and logistical challenges complicate efforts to bring foreign eggs to American grocery shelves.

Signs of Relief: Prices Beginning to Decline

Recent data from the US Department of Agriculture (USDA) shows that wholesale egg prices are beginning to decline. As of Friday, the average wholesale price of a dozen eggs had dropped to USD 3, an 8 per cent decrease from USD 3.27 on March 21. This marks a significant reduction from the record high of USD 8.15 reported on February 21, representing a 63 per cent drop in just over a month. Retail prices, which typically follow wholesale trends, are also beginning to decline, providing some relief for consumers.

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Factors Behind the Price Drop

The decline in egg prices comes amid an unexpected slowdown in bird flu cases, leading to a gradual recovery in egg inventories. Additionally, the Trump administration has taken steps to increase egg imports, further easing supply constraints. While the US lost more than 12 per cent of its caged egg-laying hens between January 1 and March 21, the improving situation suggests that prices may continue to stabilise in the coming weeks.

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