Introduction
It’s no secret that in recent years, eggs’ prices have steadily risen, and it can be challenging to understand why. In some cases, a carton of eggs can even cost as much as a gallon of milk or a pound of meat. Whether you’re a health nut who tosses one in your smoothie every morning or looking for an affordable protein for your meal plan, it’s essential to know why this shift happens. In this article, we’ll discuss some of the economic, environmental, and geopolitical factors behind egg prices’ rise.
Economic Factors That Led to the Egg Price Hike
Supply and demand, inflation, and production costs are some of the prominent economic factors behind the egg price hike.
The cost of eggs increases when demand exceeds its supply. Factors that contribute to a spike in demand include population growth and changes in dietary preferences. Since eggs serve as a cheap protein source, consumption generally increases as incomes rise in developing countries. Additionally, nutrition experts and popular diets emphasizing the consumption of eggs have raised the demand for the product.
On the other hand, supply shortages can be caused by unavoidable issues like natural disasters that limit production, decrease the availability of animal feed, and disease outbreaks that affect laying hens.
Inflation is an underlying issue that can make eggs more expensive as inflation causes the prices for materials and labor to rise.
Finally, production costs impact egg prices. The cost of labor, animal feed, and packaging materials impact the final price consumers pay.
Impact of COVID-19 on the Egg Industry
The COVID-19 pandemic that hit in 2020 has had an enormous impact on global egg production and availability.
First, transportation and supply chain disruptions have made it challenging to get eggs from the farms to the stores. These disruptions have caused some areas to experience temporary shortages of eggs, resulting in price spikes on the shelves.
Second, the pandemic has caused many people to hoard essential items, including eggs. This stockpiling has further exacerbated the issue of shortages and made eggs less available to other consumers, driving the prices even higher.
Third, many people started shifting from eating out at restaurants to cooking meals at home as governments implemented stay-at-home orders to stop the spread of the virus. This shift in demand from institutional to retail channels has contributed to a surge in demand and prices.
Ethical and Sustainability Concerns
Ethical and environmental concerns have also played a role in the rising prices of eggs. More consumers are seeking cage-free and organic eggs, which are often priced higher than conventionally raised eggs. Cage-free laying requires more space and resources per bird, driving up the production costs for these types of eggs.
Additionally, demand for more sustainable and ethical egg production practices, such as free-range farming and outdoor access, has increased egg prices. These practices require more land and resources per egg produced, increasing the cost of production.
Geopolitical Events and Their Effect on Egg Prices
Geopolitical events such as trade disputes, tariffs on imported eggs, and restrictions on exports can also impact egg prices. For example, the U.S. has imposed tariffs on eggs imported from China, Mexico, and other countries, creating a trade imbalance.
The shift in the balance of trade can increase the cost of eggs in the domestic market as other countries keep their eggs to meet domestic demand rather than exporting them, driving up prices in the global market.
Effects of Climate Change on the Egg Industry
Climate change has a direct effect on egg production, mainly through temperature and precipitation changes that impact feed availability and egg quality. Additionally, droughts and water shortages affect grain harvests and increase costs for animal feed, which drives up egg prices.
Extreme weather events like hurricanes and floods lead to immediate crop destruction, which limits the availability of animal feed. Other heatwaves and humidity spikes can cause heat stress in laying hens, leading to lower egg production and quality.
Conclusion
In conclusion, egg prices have risen due to a combination of economic, environmental, ethical, and geopolitical factors. The COVID-19 pandemic has worsened the situation, leading to temporary shortages and further price increases. As consumers, we need to keep an eye on these trends and be aware of the potential impacts on availability and pricing. While it may be challenging to find affordable eggs in the short term, encouraging sustainable and ethical egg production practices can shift the industry in a positive direction, ultimately benefiting consumers.