Retail egg prices sharply higher, up 42 percent in a week

The U.S. average egg price in grocery stores zoomed by 55 cents a dozen for Grade A Large eggs from the preceding week, a 42-percent increase, said the USDA weekly retail report. Egg prices are rising as a result of the worst avian influenza epidemic ever to hit U.S. poultry flocks. Stores sold a dozen Grade A Large eggs for $1.87, compared to $1.32 a dozen in the week ending June 5.

“Promotional activity for regular shell eggs is very limited and the average price of Grade A or better Large white eggs is sharply higher,” said the USDA. Now $1.95 a dozen, the average has soared by 73 cents in the past four weeks. The USDA says the epidemic will cut egg production by 5 percent this year and drive up prices by an average 15 percent for the year.

Higher egg prices will persist into 2016, reflecting “the expected speed at which the flock can be rebuilt,” says the USDA. Producers hit by bird flu have to cull all their hens, clean and disinfect their barns and gain approval before they can restock their farms. They will need millions of replacement birds, which must be hatched and raised to maturity. Hens begin laying eggs at around 20 weeks of age.

The Agriculture Department has hundreds of veterinarians working around the clock against bird flu, said the head of the department’s animal health agency. “Together, they are leading the response so that these vital businesses, and all who depend on them, can get back to work as soon as possible,” said administrator Kevin Shea in a letter to stakeholders.

The last case of bird flu confirmed by the USDA in poultry was on June 9, six days ago. Some 47.1 million domestic fowl, mostly laying hens and turkeys, have been killed by the virus or culled to prevent the disease from spreading. Iowa, the No. 1 egg state, lost 30.7 million birds, most of them layers.

Iowa egg farms are several weeks away from restocking, says the Associated Press. It cited a USDA official as saying the epidemic showed how safeguards against disease can fail. “At the same time, farmers will look at how they’ve set up their barns, ventilation systems and biosecurity measures, as well as how they move feed, trucks and personnel,” said the AP.

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