Egg prices falling ahead of Easter demand

Egg prices have been dropping, and a Texas A&M AgriLife Extension Service expert believes a continued downward trend should follow the Easter holiday.

David Anderson, Ph.D., AgriLife Extension economist and professor in the Texas A&M Department of Agricultural Economics, Bryan-College Station, said eggs typically reach a seasonal price peak around Easter, historically followed by price drops at grocery stores.

However, egg prices have already been on a downward trend in recent months. Wholesale prices fell from $8.51 to $3.84, or 55%, between March 1 and March 29, Anderson said.

Anderson said he is curious to see how consumer demand plays out leading into the Easter holiday when families typically dye eggs for hunts and bake for gatherings. He is also interested to see how egg prices trend after the holiday, he said.

“For the most part, egg prices have been going down,” he said. “I think the recent downward trend and the previous highs really show the egg market volatility. That’s the nature of the egg market; prices can go up and down really fast.”

For instance, a dozen large eggs that cost over $5 in December 2022 had dropped to 84 cents per dozen by May 2023, Anderson said.

AVIAN FLU IMPACTS EGG PRICES Egg prices skyrocketed to record highs as highly pathogenic avian influenza, HPAI, outbreaks in commercial laying flocks impacted supplies. Wholesale prices for large Grade A eggs hit an all-time average high of $6.14 per dozen in January, according to the U.S. Department of Agriculture.

By comparison, the same dozen eggs in January 2024 cost $2.52 per dozen. The previous price peak was $5.38 in December 2022 as the poultry industry grappled with widespread outbreaks of HPAI.

The USDA continues to report “sporadic outbreaks” within commercial meat and egg production flocks.

Anderson said there is a clear effort within the industry to add pullet hens, which lay eggs for broilers or meat production, and laying hens for table eggs. Growers added 500,000 new pullets in February, bringing the national total to 131 million on March 1, compared to 124 million at the same time last year.

But the number of laying hens in production continued to fall, he said. There were 285 million laying hens for table egg production on March 1, down from 294 million on Feb. 1.

CONSUMER DEMAND FOR EGGS AMID HIGH PRICES Anderson attributes the downward price trend to low consumer demand. Falling prices amid low laying hen numbers and, subsequently, low egg supplies signal to him that fewer eggs are being consumed.

He suspects consumers are still buying eggs but have cut back on their purchases due to historically high prices. The question is how long before consumers return to their previous purchasing habits?

The Easter holiday could spur a demand spike, but the high cost of eggs could pressure consumers toward other options.

“Easter is a big holiday; we typically see a price bump based on egg demand for those traditional family gatherings,” he said. “The question is, are people going to put out more plastic eggs for the Easter egg hunt and maybe skip the deviled eggs this year because of high prices?”