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TBD | Cracking the Egg Crisis
Mar 2, 2025
Dr. Jada Thompson, an associate professor specializing in agricultural economics at the University of Arkansas, dives into the egg crisis gripping the nation. She explains how avian flu dramatically reduced chicken populations, driving egg prices sky-high. The conversation reveals the complex dynamics of the egg market, including the role of feed costs and auction demand. Thompson also discusses how management strategies and disease containment practices have influenced the volatility in egg pricing, making it clear that recovery may be a long road ahead.
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Quick takeaways
- The dramatic rise in egg prices is primarily due to the severe impact of avian influenza, which has decimated poultry flocks by 90-94%.
- The future reduction of egg prices is dependent on effectively controlling bird flu outbreaks and the time it takes for new flocks to mature.
Deep dives
The Impact of Bird Flu on Egg Prices
The ongoing outbreak of highly pathogenic avian influenza (HPAI) has significantly affected the poultry industry, causing a drastic reduction in egg supply. With mortality rates of 90-94% in infected flocks, around 50 million birds have been lost recently, exacerbating an already critical shortage. This supply reduction has led to soaring egg prices, with costs rising from approximately $2 per dozen last fall to as high as $9.99 in some areas. As a result, many consumers are facing additional surcharges at restaurants and grocery stores, highlighting the inelastic demand for eggs despite their increasing prices.
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