George Hohmann
January 27, 2008
The egg as economic indicator
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High gasoline prices routinely make headlines - and draw consumers' ire. Although the price of eggs also has been rising, it hasn't received much attention. Maybe that's because egg prices aren't posted on giant billboards.

The fact is, the price of eggs went up 28 percent last year, according to a preliminary report by the U.S. Department of Agriculture's Economic Research Service.

Overall, the Consumer Price Index for all food increased 4 percent in 2007.

At the Kroger in South Charleston last week, a dozen large eggs cost $1.99.

"Higher feed and gasoline costs - all those things consumers are wrestling with, producers are wrestling with as well," said Kevin Burkum, vice president of marketing at the American Egg Board.

A chicken consumes 4 pounds of feed to make a dozen eggs, said the egg board, which represents large producers.

"Worldwide demand for eggs is strong," Burkum said. Egg consumption in the United States has been steadily increasing over the past decade. Exports are higher, too.

A spokesman for the United Egg Producers agreed that prices are up because costs are rising, demand is strong and supplies  are tight.

There's another factor working just now against consumers: "Egg costs typically follow a predictable seasonable pattern with higher costs November through Easter and lower costs during late spring and summer months," according to the egg board.

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