amna: Prices have risen for lots
of foods, but the cost of eggs
climbed the most in the last
year.
And consumers and businesses
have scrambled to keep up.
What's behind so-called
eggflation?
Economics correspondent Paul
Solman takes a look.
Paul: Breakfast time at in a
pickle in waltham, Massachusetts
, which means eggs.
>> I would say 70% of our menu
has eggs in it or revolves
around eggs or is egg centric in
some way.
Omelettes, scrambles, in our
pancake and waffle mix, the
French toasts.
People put eggs on hamburgers so
it crosses over the lunch,
hard-boiled eggs in salads.
A lot of eggs.
Paul: Eggs that have put the
owner in a pickle.
>> Prices have gone up 220% over
the year.
Paul: And that is wholesale
prices, ending up in a hike --
which he hasn't hiking up prices
on his menu.
>> We are kind of taking a hit
in our margins and we are hoping
they will come down.
Paul: Why not raise it
commencement with the actual
cost to you?
>> We wouldn't have many
customers walk through the door.
Paul: Eggs have become precious.
>> We have to make our employees
aware this is a commodity we
need to handle more carefully.
Paul: Don't drop the eggs.
Do you tell them not to drop the
eggs?
>> Yes.
Before if we would mess up an
egg or 1-wood break, we would
have another one.
Now we are mourning that big.
Paul: Meanwhile at the retail
grocery store, big prices soared
60% in 2022 alone, more than any
other food item, prompting memes
across the internet.
One group lodged a complaint,
big producers are price gouging.
An economist says consumers
really noticed the hike.
>> On average consumers are
buying roughly 280 eggs a year.
Folks always know the last price
they paid for gallon of gas and
they know the price they played
-- they paid for a dozen eggs.
Paul: Things are contributor to
higher prices.
>> Higher feed prices, there
have been record highs.
Transportation costs, labor
shortages and labor wages.
Other inputs like our energy to
heat barns.
All of those inputs have
increased over the year and have
really made an impact just on
production.
Paul: But the biggest driver of
eggflation is the worst outbreak
of avian flu ever.
>> We've seen populations
upwards of 50 million layers
last year.
You are talking about 15% of
overall production has been
impacted by avian influenza this
past year.
Paul: Why do they have to kill
millions of birds?
>> The thought process is to try
and stamp out the spread because
it is so deadly to the birds and
could depopulate the entire farm
itself, including put up a
perimeter around the area.
Paul: Bigflation isn't that
--eggflation isn't affecting
everyone.
Here, the hens are fluffing and
flying.
Chickens are Dan's
bread-and-butter.
>> They will be laying eggs at
about 18 weeks.
Paul: But this flock is
dwindling.
>> There were 100 chickens about
three weeks ago and now there
are six or seven.
Paul: There has been a chicken
run, customers flocking to buy
do-it-yourself layers.
>> Everyone is sinking I have to
get chickens.
Paul: How much has your business
increased since a prices started
skyrocketing?
>> 45% at least, I think the
chicken prices will be
phenomenal.
Paul: Turkeys and Turkey eggs
also popular, although here they
would never sell their stud
Edgar, an indoor regular.
Also in demand, chicks.
>> A Rhode Island red.
Paul: These two-year-old cell --
sell for eight dollars apiece.
>> Hopefully this weekend we
will be almost empty.
Paul: Egg prices have peaked
-- have ebbed since peaking in
December but some think they
will stay high.
>> Consumers will see higher
prices at grocery store chains.
Paul: Since avian flu remains an
existential threat.
>> It looks like it will be here
for the foreseeable future.
Paul: But egg persistent is not
necessarily a harbinger of
persistent inflation.
>> You would need a series of
negative shocks like this, more
and more avian flu, you would
need the price of bird feed to
continuously rise otherwise,
what this does is shock the cost
of living ones and grievously,
people with low incomes quite
seriously, it is difficult to
afford eggs, does not result in
cumulative inflation, which is a
5% or 10% increase every year on
year.
Paul: That doesn't mean a good
consumers won't continue to feel
the pinch for quite a while.
This is packing me.
[Laughter]
That hurts.
Stop it.
As for the folks buying chickens
to lay at, if you add your own
labor to the initial investment
--
>> You better have good reasons
because from an economic point
of view it makes no sense.
Paul: Unless in the broader
sense, you get value from
bonding with animals.
I hear you have very large eggs.
[Gobbling]
Trying to do some myself in
Massachusetts.