VOL. 19, NO. 1 / WINTER 2024 / URNER BARRY'S REPORTER • 23
ESTHERVILLE
FOODS, INC.
Estherville, IA
SIOUXPREME
EGG PRODUCTS, INC.
Sioux Center, IA
SUN RISE
FARMS
Harris, IA
SONSTEGARD
FOODS, INC.
Springdale, AR
SONSTEGARD
OF GEORGIA
Gainesville, GA
PACKERS OF LIQUID, FROZEN, DRIED & SHELL EGGS
SONSTEGARD FOODS, INC.
Sioux Falls, SD • 605-338-4642 • sonstegard.com
were still struggling to get their needs met,
to the extent that some were forced to
push or outright cancel orders. Part of the
issue was that many of the producers that
are often able to co-pack for others were
now buyers themselves given the strength
of their own retail orders-many of which
were outperforming seasonal projections.
Grocers attempting to build up inventories
to meet heightened holiday demand were
facing headwinds, as aggressive everyday
price points were helping to facilitate
strong retail clearance rates-and, in turn,
replenishment needs. USDA data shows
that the nationally advertised price for
Grade A large or better averaged just
$1.25/dozen in the four weeks ending
November 16-an attractive price point
under any circumstance let alone in this
economic environment, where consumers
continue to battle high food inflation.
The Consumer Price Index from the U.S.
Bureau of Labor Statistics shows that
egg prices in the year through October
fell 22.2%-the strongest decline among
all food items. That compares with a
2.1% increase in the overall cost of food
at home and is a real standout against
competing items in the breakfast category,
like cereal and bakery products, which
were up 3.5% and 4.9% in the year through
October, respectively.
Whether retailers continue to offer eggs at
such low prices or pass rising wholesale
costs on to consumers remains to be
seen, however-as does the longer-term
implication on the market. Ordinarily, high
prices cure high prices by slowing demand.
But, as we saw at this time last year, that
mechanism fails when consumers are
shielded from wholesale market gains.
Even as the bird flu was spreading and
prices were soaring, retailers continued
to use eggs as a loss leader. Efforts to
keep eggs affordable, however altruistic in
nature, simply fuels more consumption-
further skewing the supply-and-demand
balance, rather than correcting it.
Article contributed by Karyn Rispoli-Pardue
krispoli@urnerbarry.com
-22.2
-0.6
3.5
4.9
3.7
7.1
-0.4
1.1
8.9
0.5
-25
-20
-15
-10
-5
0
5
10
Bacon,
Breakfast
Sausage,
Related Breakfast
Cereal
Bakery
Products
Cakes,
Cupcakes,
Cookies
White
Bread
Dairy
and
Related
Products
Fruits
and
Vegetables Beef
and
Veal
Ham
Consumer Price Index: Unadjusted % Change October 2022-2023
Source: US Bureau of Labor Statistics
Eggs
%/Change