Egg prices continue to fluctuate

By Bernt Nelson, American Farm Bureau economist

With Easter and Passover both coming soon consumers may have experienced some shock as egg prices set recent records. The combination of inflation and highly pathogenic avian influenza (HPAI) caused egg prices to rise more than 350% per dozen compared to this time last year. In fact, some restaurants raised menu prices just to keep up with the cost of eggs.

Egg prices and highly pathogenic avian influenza (HPAI)

Eggs are considered an inelastic good. This means that even when egg prices change, consumers still buy about the same amount of eggs. Unlike other products, in many applications such as baking, eggs don’t have good substitutes. They are also a healthy — and typically the most affordable — source of protein, which makes them desirable even if prices go up. This relatively unchanging demand for eggs means that supply factors can have a big impact on egg prices.… Continue reading