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Balanced Reporting. Trusted Insights.
Saturday, April 12, 2025
A recent study by the University of California, Davis Giannini Foundation of Agricultural Economics found that the uptick in egg prices is not likely to be replicated in milk prices.
Shoppers saw relief at the supermarket in February, as the overall cost of groceries remained flat as lower prices for pork, dairy products and fruits and vegetables offset the spike in egg prices and higher prices for beef.
Prices for most major row crops are likely to fall again this year, keeping pressure on farmer earnings, even as prices for cattle and poultry continue to rise in 2025 due to constrained supplies, according to USDA.
Amid rising egg prices, USDA will invest $1 billion to combat the avian flu through a multi-pronged approach but will not authorize a vaccine at this time.
Egg prices are continuing to climb as highly pathogenic avian influenza continues spreading across U.S. layer flocks, though broiler operations have also seen a recent upswing in cases.
Higher prices for eggs helped drive a 0.3% increase in the cost of groceries in December. Beef prices rose 0.5%, while chicken and pork prices were 0.3% higher.
Poultry farms in California, Utah, Oklahoma, Tennessee and much of the Midwest are seeing a resurgence of highly pathogenic avian influenza cases, sending egg prices upward in the holiday season.
The cost of groceries was flat in August as lower prices for vegetables, grains and baked goods helped offset price increases for beef, poultry, eggs and dairy products.
Food prices are on track to return to normal levels this year, as consumers can expect to see softened food-at-home costs after years of high inflation pushing prices up, economists project.
