Odd Lots avatar

Dexa/Odd Lots

Learn more
Published Jan 23, 2023

What The Heck Is Happening With the Price of Eggs?

Explore the complex factors driving the soaring price of eggs as Glenn Hickman delves into ethical farming, supply chain dynamics, and the impact of avian flu and global inflation, providing insights into potential market corrections and industry challenges.
Episode Highlights
Odd Lots logo

Topics covered

Popular Clips

Episode Highlights

  • Avian Flu Impact

    The avian flu has significantly impacted the egg industry, leading to a sharp increase in egg prices. explains that the flu, much like COVID-19, has become endemic, with wild birds acting as super spreaders, making eradication nearly impossible 1. The outbreak has led to the loss of approximately 15% of the nation's laying flock, causing a constriction in supply and driving prices up 2.

    We'll never eradicate avian flu because then the wild bird population, and as it mutates, those wild birds are super spreaders.

    ---

    This situation mirrors the turkey market's challenges during Thanksgiving, where high demand and limited supply led to soaring prices 2.

       

    Inflation Costs

    Global inflation and rising costs, particularly for feed, have compounded the egg price surge. Hickman notes that the Ukrainian war exacerbated existing issues, causing grain prices to skyrocket, which directly impacts the cost of raising laying hens 3. Each hen consumes a bushel of corn annually, and with corn prices increasing significantly, these costs ripple through the food chain 4.

    Our grain costs have just exploded. And probably every businessman will tell you, between labor, utilities, and everything in our environment has just gone up.

    ---

    The government's compensation for avian flu-related losses covers only part of the financial hit, leaving farmers to absorb significant costs 4.

       

    Market Correction

    The egg market is currently in a correction phase, with prices beginning to stabilize after a period of extreme volatility. Hickman suggests that while prices are unlikely to return to pre-crisis levels, they will settle somewhere between the highs of recent months and the lows of previous years 5. The public's heightened awareness of egg prices, akin to gasoline, underscores their significance in everyday life 6.

    We're in a correction phase right now. Where that corrects to is anybody's guess.

    ---

    This correction is influenced by both supply adjustments and changing consumer demand patterns 5.

Related Episodes