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Takeaways
- Earnest Analytics, an analysis firm, reported that the price of eggs fell by 1.6% between March and the first two weeks in April. This is the first drop in almost a year.
- Prices are still high by historical standards, as avian virus has killed millions and limited the supply of egg-laying chickens.
- Restaurants have added surcharges, and some supermarkets limit the number of cartons a customer can purchase.
New data shows that consumers will be spared the high egg prices of Easter.
Earnest Analytics, an analytics firm, said that the price of eggs fell for the very first time in almost a full year during the two first weeks of April. Earnest said that a dozen eggs across 15 brands cost $7.30 on average from April 1-13th, down by 1.6% compared to a record $7.50 set in March.
According to the US Bureau of Labor Statistics, wholesale prices fell by more than 20% between February and March.
Earnest, which estimates that sales in the month of March fell by more than 11%, says that consumers have recently cut back on purchasing eggs due to soaring prices. Federal authorities are also monitoring egg prices. The Department of Justice Department has launched an investigation on alleged price gouging. They have also requested information from Cal-Main Foods. Cal-Maine, US’s largest egg supplier, announced earlier this month it was cooperating with the investigation.
As avian influenza killed millions of hens in the last year, supply was restricted. Some supermarkets limited the number of eggs customers could purchase. Jack Sinclair, CEO of Sprouts Farmer’s Market, said that the supermarkets’ shoppers noticed when SFM didn’t ration their purchases or raise their prices.
“I think all customers in the United States need to have 1,000 eggs on hand because they sell so quickly,” Sinclair told AlphaSense, according a transcription.
In recent weeks, it has become common to see prices per dozen in double digits. Waffle House, for example, imposes surcharges on dishes that contain eggs. Some bodegas began using egg substitutes in New York City's signature bacon-egg-and-cheese sandwich—and selling individual “loosie” eggs to those on a budget, news outlets reported.
Executives said that the shortage has not spared large restaurants chains with long-term egg contacts. Some suppliers charged surcharges, while others didn’t have as many eggs as expected, forcing kitchens spend more money on eggs. CFO Craig Pommells stated last month that the latter will cost Cracker Barrel ($CBRL) about $4 million in total over the course of its fiscal year.
“Although our egg prices are fully contracted for the remainder of fiscal 2025, one of our vendors has lost some capacity due to the avian influenza outbreak, and as a result, we've had to purchase some eggs on the open market,” Pommells said.
