Inflation in the cost of deli meats and cheese has increased the cost of providing brown-bag lunches for school children.  CoBank, documented a 9.2 percent increase in the price of ham from July 2021 to 2022, together with a general 13 percent annual increase in the price for groceries. It is estimated that two ounces of ham and one ounce of cheese in a sandwich cost $1.65 in July 2022, up 39 percent from the corresponding month in 2021.  Factors contributing to the rise in cost of deli meats include labor, reduced supply of domestic hogs and higher prices for turkey meat, attributed in part to HPAI and escalation in storage and distribution.

Retailers have noted an increase in purchases of canned tuna, chicken and alternatives to deli meat.  Consumers are downshifting consistent with a trend towards frugality, especially among low- and moderate-income families.

The financial stress of providing lunches is exacerbated by ending of free-school meals for the 2022-2023 school year.  Parents are only eligible for USDA-supplemented meals if family income is less than 130 percent of the poverty benchmark.  It is estimated that in 2019, pre-COVID, 68 percent of students received free meals through the National School Lunch Program and 5.7 percent were offered reduced-priced lunches.

The situation creates opportunities for egg-related products, even at current, high prices, the balanced protein from eggs as hard cooked and salads represent good value and could be a replacement for traditional deli-meat sandwiches in school brown bags. This is a potential promotional opportunity for the AEB.