US retail egg prices drop for first time since October 2024

Retail egg prices in the US experienced a notable decline in April, following a surge earlier this year, according to the latest data from the Consumer Price Index (CPI) released on Tuesday.

The average cost of a dozen Grade A eggs dropped to USD 5.12 in April, down from the record high of USD 6.23 set in March. This marked the first month-to-month decrease in egg prices since October 2024, Associated Press (AP) reported.

Overall, the price of eggs, across all sizes, decreased by 12.7 percent, which represents the largest monthly decline since March 1984. Despite wholesale egg prices having been on the decline for some time, it was uncertain how much retail prices would fall in April, as consumer demand typically spikes during Easter and Passover.

However, even with the drop, retail egg prices remain significantly elevated due to the ongoing bird flu crisis, which continues to decimate egg-laying hen populations. In fact, the average price in April was still 79 percent higher compared to the same month last year, when the price was USD 2.86 per dozen.

Since early 2022, bird flu has led to the deaths of more than 169 million birds. In an effort to prevent the virus from spreading, entire flocks are slaughtered whenever a bird is infected. The recovery process can take up to a year, as farms must clean their facilities and raise new flocks to egg-laying age, which can significantly impact supply. For instance, recent outbreaks in Ohio and South Dakota affected more than 927,000 egg-laying hens.

Addressing the issue of high egg prices has been a focus of the Trump administration. In February, the US Department of Agriculture announced a USD 1 billion investment to help farmers improve biosecurity measures to combat bird flu. Additionally, the US has been increasing imports of eggs from countries like South Korea, Turkey, and Brazil. According to Kevin Bergquist, Sector Manager at Wells Fargo Agri-Food Institute, egg and egg product imports surged by 77.5 percent in the first quarter of the year compared to the same period last year.

Meanwhile, the Department of Justice's antitrust division is investigating Cal-Maine Foods, the largest US egg producer, which supplies approximately 20 percent of the country's eggs. Cal-Maine reported a massive increase in its net income, which more than tripled to USD 508.5 million in its latest quarter ending March 1.