The largest egg producer in the U.S. reported quarterly financial results yesterday that showed egg prices are down approximately 50% year-over-year.
According to Cal-Maine Foods Inc's (NASDAQ: CALM) second-quarter (Q2) results, net average selling price per dozen was $1.458 for conventional eggs during Q2 2024, down 49.4% compared with $2.883 for Q2 2023.
The Demise of Eggflation
Statistics from the U.S. Bureau of Labor Statistics validate the same. Egg prices have been declining since hitting its peak average price of $4.82 in January 2023. As of November 2023, the average cost of a dozen Grade A eggs was just $2.14.
The latest CPI data also showed that, between November 2022 and November 2023, the price of eggs fell 22.3%.
Egg Price Decline Leads To 95% Dip In Cal-Maine's Operating Income
Cal-Maine's operating income declines by 95% in consequence. The notable decline was linked to a nearly 50% drop in prices of traditional shell eggs within the past year, a consequence of U.S. producers' recovery from the consequences of the highly pathogenic avian influenza (HPAI) outbreaks in 2022.
Cal-Maine Foods president and CEO Sherman Miller highlighted that the sales mirror a distinct market scenario compared to the previous year, characterized by notably reduced average selling prices. Despite this, the company experienced a slight increase in total volumes sold compared to the previous year. This rise can be attributed to sustained consumer demand for shell eggs, particularly leading up to the Thanksgiving holiday.
The provider of fresh eggs, however, remains positive and dedicated to increasing the production of specialty choices, as the current demand for these options exceeds the available supply.