By D.A. Reed
WKTV Contributor
Extraordinary price hikes on eggs over the past year and continuing inflation costs have had consumers and local business owners concerned.
340 Million: Prior to the avian influenza outbreak in 2022, that was the number of laying hens across the United States. 15 million of those hens could be found in Michigan.
Those numbers average one hen for every consumer in the country.
“For every citizen in the United States, there was one laying hen,” said Ernie Birchmeier, Senior Relations Specialist with the Michigan Farm Bureau.
More than 58 million birds affected countrywide
Since the avian influenza outbreak, however, over 58 million birds were affected countrywide, creating a hitch in egg production that resulted in higher prices for one of the country’s main staples.
In January of 2022, the average cost of a dozen large Grade A eggs was $1.93. During the past year, consumers were hard pressed to find a dozen of those same eggs for under $5.
“We lost about 45 million laying hens across the country from that influenza outbreak. That has had an impact on the size of the laying flock in the United States and has decreased egg production,” Birchmeier said.
Various strains of avian influenza are an annual occurrence.
“Typically, when you have an avian influenza outbreak, it is spread during the spring and the fall when wild birds migrate back to the north from the south and vice versa in the fall,” Birchmeier said. “When you co-mingle those birds, they bring different sets of diseases and will typically cause an influenza outbreak.”
The number of birds affected by influenza is not normally so high. So why was the bird population hit so hard in 2022?
“In 2022, (avian influenza) lasted all year, during both seasons,” Birchmeier said. “So it’s continued to have an impact.”
When will egg prices decrease?
Birchmeier said there have been reports of consumers seeing a softening in egg prices, with many lowering to more normal levels. But he cautions that it will take time to see a significant change.
“It takes time for eggs to be set, then for those eggs to hatch,” said Birchmeier, relaying that birds are typically 5-1/2 months old before they start laying. “It’s going to take time to replenish those flocks.”
Labor, transportation and energy costs add to the price
Consumers are urged to remember that labor, transportation and energy costs also are up and that factors into the cost of food along with the influenza outbreak.
There was a general food inflation of around 20 percent in 2022. Add in the impact of a reduction in egg production, and it influences those prices even more.
Farmers replenishing flocks helps soften prices
“If we can get through spring without any major problems, and farmers can replenish those flocks, we should see a decrease, a softening, of egg prices back down to more normal levels,” Birchmeier said. “It’s just going to take time for supply to catch back up (with demand).”
For many local businesses, eggs are a staple — one needed in abundance.
“It’s hard to be a breakfast place (right now),” said Delanie Haisma, a server at Anna’s House restaurant. “That’s a common thing that we supply.”
But Haisma also said that the post-pandemic general inflation is what has had the biggest impact on their business.
When asked if Anna’s House has increased prices due to rising egg prices, Haisma said, “Since the eggs have gone up, no, but about a month before that happened, we did raise our menu prices by 25 to 75 cents on a couple of items.”
Continuing supply issues also have had a large impact.
“It’s hard to keep stuff in stock, and sometimes we have to go through a third party,” Haisma explained.
Other local restaurants also have had to adjust menu pricing due to general inflation.
Real Food Café recently instituted a three-percent surcharge to all checks to offset fast-rising expenses, including rising employee wages, fuel charges, and the escalating cost of food and other goods.
Even though rising prices have stunned most consumers, Birchmeier urges buyers to consider the true value of a dozen eggs priced at $5. “That’s still a pretty good value when you consider the amount per egg. Forty cents per egg is still a pretty good value compared to a lot of foods.”
Perspective also plays a role in remembering the value of a product: “Five dollars for a dozen eggs versus $5 for that cup of coffee you stood in line and waited for,” Birchmeier said.
Michigan spared major avian flu outbreaks
Birchmeier went on to say that although the entire United States has been impacted by the influenza outbreak, Michigan as a whole has been spared any major outbreaks in our laying flock, and that other areas of the country are paying more for eggs than Michiganders.
“We are very fortunate in this country to have the food supply that we do,” Birchmeier said. “And we have choices. And we have the ability to shop around.”
Birchmeier encourages consumers to shop around for better prices than what they may find at their usual store.
“Very seldom do we ever have to worry about whether or not there is product on the grocery store shelf,” Birchmeier said. “We saw that for the first time in many people’s lives in our country during the pandemic. But our farmers are out there every day to make sure that we have a wholesome and abundant food supply in this country.”
Extra bio security measures in Michigan
Egg-laying facilities have tight bio security measures implemented by farmers that have been in place for many years. Because of these extra steps, Michigan has been spared major outbreaks in our laying flocks.
Controlling traffic flow on and off the farm, regulating the number of visitors to the farm, and making sure trucks are cleaned as they enter and leave the farm, are all steps Michigan farmers have taken to diligently keep diseases from their flocks.
“Our farmers know they need to protect the birds inside those buildings,” Birchmeier said. “For their livelihood, but also to make sure that they are producing a (safe) product for the consumer.”
Conspiracy theories put to rest
With emotions running high and bank accounts running low, Birchmeier warns against incorrect theories about causes for the egg price hike.
“We have to be very careful about everything we read on the internet and social media and make sure that we are getting accurate information rather than potential theories.”
There are other factors as to why chickens may not be laying eggs. In the winter months, it is common for chickens to go into a molt, or molting process, during which it is typical for chickens to stop laying eggs.
Regardless of the reason, Birchmeier said it is important to remember that production and distribution systems are already set and in place no matter how much farmers produce in a year.
“If there is a chink in the armor, or a link in the chain that’s broken, that’s when we run into disruptions,” he explained. “A lot of our consumers don’t understand that because we never have to think about it. (Food) has always been there.”
‘It all comes back to perspective’
“Relative to the rest of the world, we are in a fantastic position here in the United States to have a wholesome, abundant, affordable food supply typically all of the time,” Birchmeier said.
He explained the importance of understanding that farmers are greatly impacted by all this as well.
“We’re feeling the brunt of high labor, high energy costs, as well, across our food production system. But farmers themselves can’t pass those costs on, they have to absorb them, versus other manufacturers and goods and services (that) typically add those costs on and pass them along to the consumer. We see our ups and downs in the agricultural department from an economic standpoint as well.”
Birchmeier strongly encourages consumers to know the facts before jumping to conclusions, and to ask farmers if they have questions.
“We are glad to share our information because we’re all together in this.”
D. A. (Deborah) Reed is an award-winning author of young adult novels and a creative writing instructor from the Grand Rapids area. To find out more about D.A. Reed, visit her website: D.A. Reed Author
