Analyst: Egg prices jump as demand increases during pandemic

The price of an 18-pack of large eggs was $2.59 Monday at the Giant Eagle in the Edgewood Towne Centre.

On Sept. 21, 2019, a similar package of eggs from the same store was $1.99.

Nationwide, sales of eggs have doubled since January. People are buying more when they shop because of the covid-19 outbreak that’s shut down most of the country, according to Brian Moscogiuri, an analyst at Urner Barry, a commodity market research firm based in New Jersey.

“There’s no way to squeeze a chicken and get more eggs out of them,” Moscogiuri said.

An industry benchmark is the price of a dozen “Midwest large” eggs. In early March, it was at $1.03. Moscogiuri said the price has since tripled, to $3.09.

At the wholesale level, eggs are bought and sold as a commodity. The price is governed by supply and demand. Although the egg supply hasn’t varied, the surge in demand wrought by people buying more groceries has caused the spike in prices.

Sales are nearly double from 2019, Moscogiuri said.

“It’s a tremendous amount of strain on the supply chain,” he said.

While some stores have passed these increased prices on to customers, others sell them at a loss with hopes that people buy other products, too, Moscogiuri said.

“At Giant Eagle, we are taking measures to protect our guests entirely from these covid-19-related cost increases,” said Dick Roberts, a spokesman for the O’Hara-based regional grocery store chain. “To date, we have not seen significant impact on other dairy items like milk, butter and cheese.”

A gallon of Turner whole milk was selling for $4.45 on Monday. On Sept. 21, 2019, its price was $4.47, according to a sales receipt.

Milk prices are controlled by the state and haven’t varied as much, said Steve Turner, marketing manager of Turner Dairy, based in Penn Hills.

While the dairy has seen an increase in sales to its retail customers, it’s also had to work through a drop in demand because schools and restaurants are closed or their business is limited, Turner said.

“There’s definitely been a drop in volume,” he said.

Pennsylvania Attorney General Josh Shapiro has railed against price gouging during the covid-19 pandemic. His office established a dedicated email address for people to make reports: pricegouging@attorneygeneral.gov.

Shapiro’s office has been issuing cease-and-desist letters to businesses that are reported for price gouging.

Among the recent reports the office has acted on:

• A grocery store in Lancaster County was selling a dozen eggs for $6.99.
• A grocery store in Montgomery County was selling infant formula for $10.
• Ginger ale went to $6.39 at a grocery store in Berks County.
• A grocery store in Reading increased the price of 2% milk to $5.09.
• Milk went to $9 at a store in York County.
• Orange juice in a Carbon store jumped to $7.77.

Thus far, Shapiro’s office has said stores have complied with the letters once they’ve been called to task for the price increases, according to a spokesman.