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Case Code: ECON081
Case Length: 12 Pages
Period: 2017-19
Pub Date: 2020
Teaching Note:Available
Price:Rs.300
Organization : The US Egg Industry
Industry :Poultry
Countries : United States
Themes: Micro Economics/Pricing
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New Equilibrium Price of Egg in the US

 
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INTRODUCTION

 
In October 2019, the average retail price for a dozen “regular” eggs in the US was US$1.12, down 11.6% from a year earlier, when it was US$1.25. The demand for eggs in the US had grown over a number of years except in 2015, when there was an outbreak of the highly pathogenic avian influenza (HPAI) that took the lives of about 12% of the US table-egg laying birds due to disease and culling. With the huge disruption in the market caused by the HPAI outbreak, the prices of eggs in the market soared. After that, the US egg industry started increasing production, leading to egg prices stabilizing in the country. However, the egg prices saw some recovery in 2018 along with high demand and sale of table-eggs due to the changing retail scenario in the country. Supermarket retailers started selling eggs in their stores to increase foot traffic. Higher demand also increased egg production in the country. With the steady expansion of egg production, the supply of eggs outpaced demand and this impacted the egg prices. This trend continued in 2019. Egg prices dropped to below the cost of production around April 2019. ..

 

 
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