At last, the price of eggs is falling; supply exceeds demand

Photo by Hannah Oliver, Unsplash

Oh, Chicken Little, the sky isn't falling, but the price of eggs is! An expert says the decrease is a "supply-and-demand, market-driven tumble," reports Adam Russell of Texas A&M Extension. University economist David Anderson told Russell that he expects the trend to continue.

The price of a dozen eggs peaked in January of 2023 at around $5 and has been declining since. "The Department of Agriculture's Agriculture Marketing Service reported retail eggs nationally were $2.74 per dozen between April 14-20 and were expected to be around $1.08 per dozen this week, Russell reports. "Anderson expects the cost of a dozen eggs will continue to decline in other markets around Texas and the U.S. because wholesale prices are already down to 84 cents per dozen. Prices that are low could be concerning for producers and are likely to trigger thoughts about slowing production growth. Declining costs for feed like soybean meal and corn are also helping livestock and poultry producers and may contribute to even lower prices. . . . The falling wholesale egg prices could be a good indicator that the next Consumer Price Index might show falling retail prices."

Egg producers have been trying to recover their flocks after last year's devasting avian flu. Russell reports, "Egg supplies are still below where production was a year ago, but supplies continue to rise amid declining purchases, Anderson said. Rising supplies and weaker demand are driving egg prices downward. Producers continue to rebuild the table egg-laying flock hit hard by the avian flu outbreak. . . . [Farmers lost] over 43 million laying hens in 47 states. Anderson told him: "Some of the demand issues are seasonal, but consumer response to higher egg prices is also part of it. . . . Meanwhile, egg producers continue to increase production, and the market is responding to the supply and demand factors. It's a good example of how the market works."