CNBC reports that “wholesale egg prices have cratered in recent weeks from record highs,” but it is uncertain that this will have an impact on retail prices in the short term.
While “the deadliest outbreak of bird flu in history” has been primarily responsible for egg price increases, the story points out that “there haven’t been any new bird-flu outbreaks among commercial table-egg laying birds since Dec. 20, according to the U.S. Department of Agriculture.
“A prolonged period without setbacks in egg production has given suppliers a reprieve and the market time to recover, said Brian Moscogiuri, global trade strategist at Eggs Unlimited, one of the largest egg suppliers in the U.S.
“Consumer demand also typically wanes in January and February, further alleviating price pressures, Moscogiuri said.”
But … egg demand generally increases during the weeks before Easter – on April 9 this year – which means that retailers will be incentivized to do a little profit-taking.
Plus, experts say that “it takes about four weeks for retail prices to reflect wholesale price trends,” and “for every 10% decrease or increase in wholesale egg price, consumers can expect retail prices to shift about 2%, on average.”
KC’s View:
Seems to me that this is one of the moments when retailers have the opportunity to prove that they are advocates for the shopper. Even if profit-taking seems like a legitimate first impulse, this perhaps is a good time to resist it.
The post <strong>Wholesale Egg Prices Down, But Retail Prices Remain Scrambled</strong> appeared first on MNB.
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