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Egg Prices Fall as Bird Flu Eases, Demand Cools

14 days ago
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U.S. egg prices fell in April following a sharp rise earlier this year, as bird flu outbreaks slowed and consumer demand eased.

Shoppers paid an average of $5.12 per dozen large eggs in April, down 18 percent from March’s record high, according to data released by the U.S. Bureau of Labor Statistics.

The drop marks the largest monthly decline in egg prices since 1984 and contributed to a softer-than-expected rise in overall consumer prices.

The decline came despite the Easter holiday, typically a peak period for egg demand. Analysts say sales during the holiday were in line with previous years, signaling that earlier concerns of consumer pullback did not materialize.

“Easter demand held steady,” Justin Barlup, lead poultry analyst at Bloomberg Green Markets, said.

“Now that retailers are restocking and panic-buying has eased, prices have stabilized and are expected to decline further into May.”

Egg demand typically softens in summer months as consumer focus shifts toward grilling meats. Wholesale prices began falling in March, but retail prices remained elevated amid concerns over supply shortages.

The U.S. Department of Agriculture (USDA) said in a weekly report that prices remain too high to support purchases beyond normal levels. Grocers have been reluctant to offer discounts as supply constraints persist.

A bird flu outbreak in late April at a commercial egg facility in South Dakota affected more than 630,000 birds, contributing to continued caution among retailers.

Despite the recent outbreak, the USDA expects egg supplies to rebound. Imports are projected to reach 103.7 million dozen this year, nearly triple last year’s total. Egg production is forecast to rise in 2026 by nearly 6%, reaching 9.32 billion dozen.

However, retailers may still face pricing pressure. Vital Farms Inc. announced plans to raise shell egg prices for stores such as Target and Whole Foods, citing increased commodity costs and the effects of tariffs, according to Chief Executive Officer Russell Diez-Canseco.

“As we progressed into the year and we started to learn more about the impact of tariffs, for example, on the cost of various commodities, we thought it was prudent to take this modest price increase to ensure that we’re in good, great shape to deliver on our commitments for this year,” Diez-Canseco said on a recent earnings call.

Meanwhile, larger producers are expanding capacity. Global Eggs, which recently acquired Hillandale Farms in Pennsylvania, will increase its flock size by about 5% this year, according to CEO Ricardo Faria.

The USDA projects average retail prices will fall to $2.16 per dozen in 2026, assuming continued recovery in bird populations and stable market conditions.

 


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