Prices for eggs rise dramatically as buyers stock up on COVID-19 hunting
As consumers swipe eggs off grocery shelves in expectation of more meals cooked at home over an extended period of time in an effort to prevent contracting or to limit the spread of the coronavirus, retail and processing egg prices have surged amid constrained supply (COVID-19).
Regarding egg products supplied to food producers, a Midwest egg processor stated, “If it ends up in a grocery store, they’re taking it.” Sales of his plant, he calculated, had increased by up to 200% for products marketed at grocery shops, while in certain circumstances, sales to restaurants, caterers, schools, arenas, and the like had decreased by up to 75%.
During the pandemic, consumers shifted their eating habits to include significantly more meals at home and dramatically fewer meals away from home. This adjustment is reflected in the change in sales.
Among the staples that were flying off store shelves as people stocked up—and in some cases hoarded—because of COVID-19 were eggs, sugar, flour, spaghetti, beans, rice, soup, and a few other products.
According to the US Department of Agriculture’s Agricultural Marketing Service, “National f.o.b. shell egg weighted average prices are sharply higher for extra large and large with the balance of sizes not well tested” as of March 19. The undertone has a noticeable increase. There is good to very good retail demand. Light to extremely light offerings are made. Current needs are moderately to somewhat short of supplies.
As the week went on, the USDA stated that the price of shell eggs for retail sales increased by 21¢ to 55¢ per dozen, depending on the size and region. These increases ranged from 10¢ to 20¢ per dozen every day.
Prices for processed eggs increased by roughly 3¢ per dozen last week, following a 20¢ increase the week before. Breaking stock values were up almost 170% from the lows of late January and from the previous year.
“The absence of breaking stock is the reason why it hasn’t increased more. “No offers,” stated the processor.
Some egg processors purchase extra eggs for breaking, but the majority are vertically integrated with their own laying flocks.
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“It’s going to retail if it can be graded,” he declared.
The costs of liquid, frozen, and dried egg products had minimal fluctuations last week, following a substantial spike in the prices of frozen and liquid whole, white, and yolk values one week prior. Changes in the price of eggs usually have the greatest impact on liquid product prices. From January lows, liquid whole eggs had increased by 93%, whites by 25%, and yolks by 22%.
Prior to the COVID-19 outbreak, egg processors were already following stringent cleaning protocols, including thorough nightly facility washdowns, according to the Midwest source.
He remarked, “We now have an extra guy running around wiping down all the surfaces throughout the day.”
Despite the fact that COVID-19 is not food-borne, new cleaning practices were implemented to protect staff members.