Shoppers see egg prices fly up

Shoppers see egg prices fly up
By Elaine Thompson
Telegram & Gazette Staff

Posted Jun. 12, 2015 at 9:42 PM
Updated at 8:50 PM 

Dairy manager Leo Lambert stocks the egg case at Big Bunny Market in Southbridge on Friday. T&G Staff/Christine Hochkeppel

 

The bird flu outbreak in the Midwest, the largest in U.S. history, has caused the price of egg products to soar, including in this area.

Since the first reported detection of the H5 virus or avian influenza on December 19, more than 47 million domestic poultry have been affected in more than a dozen states, mostly in the Midwest, including Iowa, the country's largest egg producer.

While many area grocers purchase eggs from wholesalers in the northeast, the impact is still being felt here.

"It's industry-wide," said Jo Natale, spokeswoman for Wegmans. She said although the company's supplier of fresh poultry and eggs and pasteurized eggs has not been affected by the virus, their prices have been.

"There has been such a significant loss of layer hens that the cost of eggs has just been driven up dramatically. As a result, we have had to raise retail prices," she said, during a phone interview Friday from a new store opening in Alexandria, VA.

"But, we have absorbed much of the higher cost in order to remain competitive."

She said the cost for fresh shell eggs at the Northboro store has increased approximately 85 percent. The wholesale cost for liquid pasteurized eggs has tripled. She said the impact on liquid eggs has been greater because many of the Midwest producers hardest hit produce "breaker" eggs used in the egg-processing market. Prices on some bakery products that contain pasteurized eggs have also climbed.

Signs posted in stores near coolers containing fresh eggs and in the bakery explain the price increases to customers. Ms. Natale said the market for fresh shell eggs has stabilized in the last few day, but it's not known what will happen going forward.

The U.S. Department of Agriculture is expected to allow imports of pasteurized eggs from the Netherlands to supplement the supply and help alleviate the high prices.

Jonathan Cournoyer, store manager at Big Bunny Market in Southbridge said that on May 1, the wholesale price the company paid for eggs doubled. He said before May 1, the retail price for a dozen of large white eggs was $1.59. It’s now more than $3, he said the family-owned company, which also operates a store in the Fiskdale section of Sturbridge, buys egg products from C&S Wholesale Grocers in Keene, NH.

“It has been kind of crazy,” he said.

Big Bunny Market general manager Jonathan Cournoyer said the wholesale price of eggs has almost tripled since May 1. T&G Staff/Christine Hochkeppel

Prices of mayonnaise and other condiments that contain eggs could also start to go up, Mr. Cournoyer said.

"I haven't heard any complaints from customers," he said. "With this type of thing, people are a little more aware of it. They started talking about the bird flu in April. In May, the prices started going up 10 to 15 percent every week."

Eric Blom, spokesman for Hannaford supermarkets, said they also have seen an increase. He declined to say by how much. He noted that the company has no plans of limiting egg purchases like some grocery stores in other parts of the country.

"We're very reluctant to raise prices on eggs in particular because it's such a core item for our site," he said.