Brown Deer, Wisconsin – With spring holidays around the corner, egg prices are soaring to near-historic highs globally. A combination of factors – including disease, high demand, and rising costs for farmers – has thrown the market into disarray, leaving consumers facing sticker shock as they prepare for Easter and Passover celebrations.
Despite a slight decrease in global egg prices compared to last year, prices still remain significantly elevated. Nan-Dirk Mulder, a senior global specialist at RaboResearch Food and Agribusiness, predicts that prices are unlikely to return to 2021 levels anytime soon.
In the United States, the average price of a dozen eggs in February was $2.99, down from $4.21 the previous year. However, this price is still more than double what consumers were paying in February 2021. Similarly, in Europe, egg prices have dropped by 10% to 15% compared to last year, but are still twice as high as they were in 2021.
One of the primary factors contributing to the surge in egg prices is avian flu. Outbreaks of the deadly respiratory disease have been reported in various regions since 2020, leading to the deaths or culling of over 131 million poultry globally in 2022 alone. The ongoing outbreaks continue to impact egg production and drive prices up.
In South Africa, egg prices skyrocketed after a significant portion of laying hens were lost to avian flu. The resulting shortage led to a 21% increase in egg prices within a month. The ripple effects of avian flu can be long-lasting, as it takes several months for farms to replenish their flocks, leading to decreased egg supplies and higher prices.
Despite the challenges posed by avian flu, other factors like weather disruptions, COVID-related issues, and geopolitical events – such as the war in Ukraine – have also played a role in driving up egg prices. For farmers, the rising costs of chicken feed, which constitutes up to 70% of production expenses, have further exacerbated the situation.
As consumers grapple with the impact of surging egg prices, some regions have implemented subsidy programs to alleviate the financial burden. In Nigeria, where egg prices have doubled since the beginning of the year, the government of Lagos State has introduced subsidies to support consumers. Additionally, regulations such as cage bans for egg-laying hens in several states have also contributed to higher prices, as farmers transition to cage-free facilities.
While price peaks are expected to be followed by declines, the short-term forecast indicates that egg prices are set to decrease slightly in the coming year. Despite the challenges faced by both farmers and consumers, hope remains that the egg market will stabilize, providing relief to those impacted by the recent price fluctuations.