The Rundown

Deep Dive: How Eggs Became a Luxury Item

21 snips
Feb 15, 2025
Explore the surprising journey of eggs from breakfast staple to luxury item amid soaring prices. A devastating bird flu outbreak has decimated hen populations, driving up costs dramatically. Discover how major producers like Cal-Maine are reaping huge profits while facing broader economic implications. Dive into the political fallout as rising prices challenge economic strategies, making grocery bills feel heavier than ever. It's a compelling tale of how a simple food item reflects larger economic shifts.
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INSIGHT

Egg Prices Soar

  • Egg prices hit a record high of $4.95 a dozen in January 2024, a 15% increase from December and a 55% year-over-year surge.
  • This impacts nearly all US households as 97% purchase eggs, with the average resident consuming about 270 annually.
INSIGHT

Bird Flu Impact

  • The avian flu outbreak, which began in 2022, has decimated 100 million egg-laying hens, severely impacting egg supply.
  • The USDA's $2 billion intervention hasn't curbed the outbreak, and egg prices are projected to rise another 20% this year.
INSIGHT

Price Inelasticity of Eggs

  • Despite price hikes, egg demand remains relatively steady due to price inelasticity.
  • The 2014-2015 bird flu outbreak saw egg production drop 10%, prices rise 61%, and industry revenues increase 32%.
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