Dayton Daily News

Egg prices rise:

Avian flu affects restaurant costs, but no shortages foreseen.

- By Mark Fisher Staff Writer

the costs leave eateries and grocers scrambling,

Egg prices have spiked as a result of an outbreak of avian flu, affecting restaurant­s and grocers, although no egg shortages are expected.

“We definitely won’t be putting any omelets on sale,” said Dan Young, owner of Young’s Dairy and the Golden Jersey Inn on U.S. 68 north of Yellow Springs.

Young said he is paying more than double the price he paid a year ago for eggs. “It’s up about 114 percent as of last week compared to a year ago,” Young said.

The surge in egg prices, if the spike continues, would cost Young’s business about $1,000 a month, Young said. “And if it goes on for several months — which is not expected — the impact would ripple through the cost of several items,” since eggs are used for the base for custard and French vanilla ice cream and for various baked goods at the restaurant and dairy.

In the Midwest, the average wholesale price last week was $2.62 for a dozen eggs, up from $1.40 a year ago, Brian Moscogiuri, a market reporter for Urner Barry, a food industry trade publicatio­n, told the Kansas City Star.

Farmers have lost 47 million hens and turkeys since the virus began spreading a few months ago. Last week, the

U.S. Department of Agricultur­e released a report lowering its forecast for domestic egg production this year to 95.9 billion, down 4 percent from estimates prepared last month. In 2014, the U.S. produced nearly 100 billion eggs.

The “bird flu” virus struck at a time when eggs were rising in popularity. Buoyed by the popularity of protein-rich diets and new studies showing dietary cholestero­l had little impact on a person’s cholestero­l levels, Americans on average consumed 263 eggs last year, a 30-year high.

Restaurant­s and grocery stores in southern states have felt the most impact. The Texas-based fast-food chain Whataburge­r announced June 1 that it was curtailing its breakfast hours because of the impact of the avian flu, although four days later, the company restored its regular breakfast hours, cautioning that it would serve eggs only from 5 to 11 a.m.

“We’re exploring several options to add to our egg supply, including proactivel­y engaging alternativ­e egg suppliers,” Whataburge­r officials said on the company’s website. “We will continue to experience some shortages while we work to increase the available supply.”

Also in Texas, the grocery chain HEB started limiting customer purchases to three dozen eggs per visit, in part to deter commercial companies from buying the chain’s eggs, a company official told The New York Times.

Young said he has no plans to raise Young’s Dairy or Golden Jersey Inn menu prices or change portion sizes as a result of the egg price spike. He believes the price surge will last a few months or less — “and in this business, there is always, and I mean always, something that we are paying historical­ly high prices for,” the restaurant owner said.

Some items, such as bacon and other cuts of pork, are returning to a more normal price after reaching historic highs last year, Young said. That will help to balance overall food costs.

There is some evidence that the egg-price spike has reached its peak. The U.S. Department of Agricultur­e’s price report Thursday noted that whole-egg prices were “mostly lower” while demand into grocery retail channels was “mostly light.” Restaurant and other food-service demand was described as “light to moderate.”

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