Egg Prices Dip - What's the Cause?
Like a faulty souffle, fluffed-up egg prices have fallen
For months and months, the price of eggs skyrocketed in the United States, generating concern among consumers. However, in recent times, there has been a downward trend in the price of this staple food.
As of last week, large eggs from the Midwest, considered the reference point for shelled eggs in the country, have a significantly lower cost in the wholesale market.
This sharp fall in prices has raised questions about the reasons behind this change and its implications for consumers.
The reversal of supply and demand trends
Why did the price of eggs fall? The answer lies in a reversal of supply and demand trends that had previously led to a significant increase in prices.
Last year, avian influenza affected a large number of laying hens, thus reducing the supply of eggs in the market. In addition, farmers faced inflated food and fuel costs.
These interruptions allowed producers to increase prices and obtain considerable profits. However, at present, the supply of eggs has returned to normal. Although more cases of avian flu were expected this year, the virus seems to be under control. On the other hand, demand has not followed the same pace.
The impact on the economy
Eggs are not only a staple food, but they also have a close link with the economy. During the period in which egg prices reached their highest peak, consumers responded by buying less of this product. High prices generated concern and became a symbol of inflation.
Unit sales of eggs in U.S. retail decreased by 4% compared to the previous year. Although sales have remained stable in general, demand has decreased due to factors such as the season and attention to the buyers' budget.
Despite the fall in wholesale prices, it is important to note that retail egg prices have decreased at a more moderate rate. Supermarkets and grocery stores set retail prices and, in general, do not immediately reflect wholesale trends. by
Therefore, consumers can still find higher prices in stores. However, food prices in general are expected to decrease in the future. Retailers are carefully evaluating the situation before fully adjusting their prices, making sure that there are no disturbances in the market.