Take USDA’s latest report around chicken production and eggs with a grain of salt

A big part of Secretary Rollins’ agenda will be shifting away from depopulating flocks hit by High-Path Avian Flu and instead focusing on efforts like vaccination. Critics argue depopulation is sending egg prices soaring, and others argue vaccinations could interrupt international trade.

The latest USDA report shows a dozen eggs pushing $4.50, but analysts say that does not take into account the millions of birds lost already this year.

“The U.S. lost about 43 million birds in January and February, after this report. Now this is about 25 percent or a quarter of all the birds affected since the outbreak began 2022, and this is not yet captured in this report,” said Bernt Nelson.

Data shows the average New York wholesale price for large eggs at the end of January at nearly $7.50 per dozen, which is up more than 150 percent on the year. Analysts say average prices are expected to rise as the year carries on.

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In June, prices were down 77% compared to the highest weekly price in 2022.
According to the USDA Outlook Board, margins could improve for producers depending on a decrease in cases of High-Path Avian Flu (HPAI).

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