Indiana Ag Connection - Will Egg Prices Come Down Soon?

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Will Egg Prices Come Down Soon?
Indiana Ag Connection - 02/03/2023

A video featuring Jayson Lusk, distinguished professor and head of the Department of Agricultural Economics at Purdue University, has been uploaded to the AP Video Hub. In this video, he explains why egg prices are currently so high and what has likely caused the increase for consumers. This video can be found at https://bit.ly/3RxT24D

Lusk explains why consumers are currently paying so much for eggs and what has likely caused the price increase. The most recent data shows a 60% jump in egg prices from a year ago, with the current surge peaking in January. Lusk says bird flu is the primary cause for the increase in prices.

In 2020, Lusk says 13% of laying birds were lost nationally due to the disease, and it has taken time for that impact to hit consumers. The reason prices have increased so much is because there is no good substitute for eggs, according to Lusk, and consumers will continue to buy eggs even as prices rise. He says it takes a significant price hike to convince shoppers to cut back demand to reach the number of eggs currently being produced.

Egg producers have also had 20% to 30% higher feed prices, as well as higher energy prices.

The good news, Lusk says, is that wholesale prices, or what grocery stores pay for eggs, have come down in recent weeks. This should soon lead to lower prices for consumers.

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