The American Egg Board (AEB) monitors social media and mainstream print, audio and visual coverage to discern trends in the image of eggs. The unprecedented increase in retail prices since the emergence of H5N1 Highly Pathogenic Avian Influenza has resulted in a spike in posted concern over the escalation. Despite comments regarding cost of production and the disturbance in supply-demand equilibrium as a result of depletion of as many as 44 million hens, media commentators are unable to reconcile increases in cost of production with the corresponding rise in shelf price. The U.S. egg industry is facing a profound erosion of image as a result of high prices that are evident to consumers.
Moving into the first quarter of 2023, prices are declining although they are appreciably higher than for corresponding periods in the preceding three years. Until flocks are restored, supply will lag demand resulting in higher prices and disinclination by many chains to reduce margins and offer features on generics.
Since high prices have prevailed for close to a year and in the context of inflation in food prices, consumers will probably cease regarding eggs are a “cheap” commodity. Compared to red meat and poultry, the nutritional contribution of eggs may be more highly valued by consumers. Cost per unit of protein is an attribute that should be emphasized in AEB promotional activities.