Latest news with #DavidOrtega
CBS News
3 days ago
- Business
- CBS News
Egg prices for consumers fell to 5-month low in May. Here's why.
Consumers are finally getting a break when it comes to egg prices. Egg prices dropped to $4.55 in May, down 11% from $5.12 in April, according to data from the Bureau of Labor Statistics. The price drop for a dozen Grade A large eggs comes as the effects of a years-long, widespread avian flu outbreak recede and demand for eggs softens slightly, as it usually does this time of year. "There are two main drivers behind the drop in prices — abatement in the conversation about bird flu, and some seasonality in uses of eggs. Typically as we move into summer, demand for eggs soften, as people shift to consuming more meat and grilling outdoors," Brett House, an economics professor at Columbia Business School, told CBS MoneyWatch. "People aren't making heavy breakfasts, so we don't see demand for eggs being as strong as it typically is during the winter months." While egg prices have declined for two consecutive months, down from $6.23 a dozen in March, they remain elevated compared with 12 months ago. In May 2024, a dozen eggs cost $2.70. David Ortega, a food economics professor at Michigan State University, told CBS MoneyWatch that avian flu containment has been responsible for most of the decrease in the average price of eggs. "This is primarily due to a reduction in the number of commercial facilities that have been impacted by the bird flu," he said. "A lot of bird flu activity in the beginning of the year led to a significant surge in egg prices, but those impacts have really lessened over the past couple of months." Wholesale egg prices began to decrease in March, according to Ortega, and the price drops are now starting to show up at the retail level. "There's a bit of a lag before they reach consumers at the grocery store," he said. The bird flu outbreak, which began in the spring of 2022, is not yet entirely contained and continues to impact the industry, he cautioned. "It's still very much an issue," Ortega said. A May outbreak at an Arizona layer farm affected nearly 1.4 million birds, according to data from the U.S. Department of Agriculture. Consumer Price Index data shows that while overall food costs rose slightly in May, egg prices dropped. "But egg prices are still substantially higher than they were 12 months ago, even after two months of decreases," House said.
New York Times
04-04-2025
- Business
- New York Times
U.S. Farmers Brace for Losses in New Trade War With China
The U.S. agricultural industry is bracing for the potential of tens of billions of dollars in losses after China on Friday announced a 34 percent retaliatory tariff on imports from the United States. China's counterpunch to worldwide levies announced by the Trump administration this week will hit American farmers hard. China, which consumes 14 percent of all U.S. agricultural exports, took in more than $27 billion worth of those and related products last year, according to the U.S. Department of Agriculture. It is the third-largest importer of American farm goods, behind Mexico and Canada. During the first Trump administration, a two-year trade war between the United States and China reduced U.S. agricultural exports to China by an estimated $25.7 billion. This time it could be even worse. 'If these tariffs go into effect for a significant period, we're likely looking at a disruption that is likely to be severe, and likely worse than the 2018 trade war,' said David Ortega, a professor of food economics and policy at Michigan State University. Those disruptions, he added, are not limited to short-term monetary losses. 'We saw acreage reductions, market share losses, and long-term structural shifts in global trade flows,' Dr. Ortega said. The 34 percent tariff announced on Friday is in addition to existing tariffs, like the 10 to 15 percent rates that China imposed last month. The American Soybean Association noted in a statement that soybeans would face a 60 percent tariff in China starting next week, double what was levied in the 2018 trade war. The association estimates that American soybean farmers will lose $5.9 billion annually. Brazilian soybean farmers, who gained greater access to China during the 2018 trade war, will be the beneficiaries, the statement said. Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times. Thank you for your patience while we verify access. Already a subscriber? Log in. Want all of The Times? Subscribe.
Yahoo
12-02-2025
- Business
- Yahoo
Grocery prices jumped 0.5% last month. Here's where shoppers were hit hardest.
Starting off your day with bacon and eggs? It'll cost you. Grocery price inflation has come a long way since hitting 13.5% in the summer of 2022, but January saw a notable jump with prices up 1.9% from the same month last year, up from 1.2% in January 2024. Prices were up 0.5% from December, the largest month-over-month increase since October 2022. Some of the largest price hikes are staples of the traditional American breakfast. Bacon prices are up 4.1% from the prior month, frozen juices are up 5.3% and fresh biscuits, rolls and muffins are up 1.8%. But the item with the largest monthly price jump in consumers' grocery carts, according to the Labor Department's consumer price index? Eggs. Prices jumped a whopping 15.2% last month after the H5N1 bird flu disrupted egg production. "When you're looking at the data, it's the breakfast items that stand out," said David Ortega, a food economics professor at Michigan State University. But "there are still inflationary pressures across the various food categories." For shoppers looking to cut costs at the breakfast table, there are a number of items that saw prices improve from December to January. Breakfast cereal is down 3.3%. Bread is down 0.7%, or 0.9% if you're not buying white bread. Fresh coffee cakes and doughnuts are down 0.5%. Breakfast sausage is down 0.3%. Roasted coffee is down 0.3%. Egg prices are up: Trader Joe's, other retailers limiting how many eggs people can buy amid shortage Other popular food items saw price hikes in January compared to the previous month. Instant coffee is up 4.4%. Margarine is up 3.6%. Canned fruits are up 2.8%. Beef steaks are up 2.8%. The good news, Ortega said, is that the rate of food price increases has moderated since 2022. The not-so-good news for shoppers? Food prices are still "significantly higher" today than four years ago. While the pace of price increases has slowed, that doesn't mean prices across the board are expected to fall. A widespread drop in prices, also known as deflation, usually indicates a weak economy. Ortega said it's "worrying" that the rate of increases has started to tick up, but it's too early to predict what food prices will look like for the remainder of 2025. He said bird flu and climate change are two factors contributing to some of the recent price increases, and he'll keep an eye on President Donald Trump's policies ‒ particularly his administration's plans with tariffs ‒ to see if they drive up food prices. Trump earlier this month paused 25% tariffs on Canada and Mexico for 30 days. "Policies can have an impact on food prices," he said. "We're coming off a period with a lot of disruptions to the agrifood industry, from COVID, Russia's invasion of Ukraine. We need a period of stability, especially when it comes to policy, so that we don't get ourselves into an inflationary period when it comes to food prices again." Michael Swanson, Wells Fargo's chief agricultural economist, pointed to beef prices as another trend to watch. Prices have been up since a 2022 drought forced ranchers to send more cows to slaughter; according to the latest consumer price index, beef prices are up 5.5% from the same month last year. Consumers so far have been willing to pay record prices thanks to recent trends around wage and employment growth, according to Swanson, but prices could drop if demand ebbs. This article originally appeared on USA TODAY: Grocery prices are up. See which food items will cost you more. Sign in to access your portfolio
USA Today
12-02-2025
- Business
- USA Today
Grocery prices jumped 0.5% last month. Here's where shoppers were hit hardest.
Starting off your day with bacon and eggs? It'll cost you. Grocery price inflation has come a long way since hitting 13.5% in the summer of 2022, but January saw a notable jump with prices up 1.9% from the same month last year, up from 1.2% in January 2024. Prices were up 0.5% from December, the largest month-over-month increase since October 2022. Some of the largest price hikes are staples of the traditional American breakfast. Bacon prices are up 4.1% from the prior month, frozen juices are up 5.3% and fresh biscuits, rolls and muffins are up 1.8%. But the item with the largest monthly price jump in consumers' grocery carts, according to the Labor Department's consumer price index? Eggs. Prices jumped a whopping 15.2% last month after the H5N1 bird flu disrupted egg production. "When you're looking at the data, it's the breakfast items that stand out," said David Ortega, a food economics professor at Michigan State University. But "there are still inflationary pressures across the various food categories." Capitalize on high interest rates: Best current CD rates What breakfast food prices have gone down? For shoppers looking to cut costs at the breakfast table, there are a number of items that saw prices improve from December to January. Breakfast cereal is down 3.3%. Bread is down 0.7%, or 0.9% if you're not buying white bread. Fresh coffee cakes and doughnuts are down 0.5%. Breakfast sausage is down 0.3%. Roasted coffee is down 0.3%. Egg prices are up:Trader Joe's, other retailers limiting how many eggs people can buy amid shortage What other food prices are up in January? Other popular food items saw price hikes in January compared to the previous month. Instant coffee is up 4.4%. Margarine is up 3.6%. Canned fruits are up 2.8%. Beef steaks are up 2.8%. The good news, Ortega said, is that the rate of food price increases has moderated since 2022. The not-so-good news for shoppers? Food prices are still "significantly higher" today than four years ago. While the pace of price increases has slowed, that doesn't mean prices across the board are expected to fall. A widespread drop in prices, also known as deflation, usually indicates a weak economy. Ortega said it's "worrying" that the rate of increases has started to tick up, but it's too early to predict what food prices will look like for the remainder of 2025. He said bird flu and climate change are two factors contributing to some of the recent price increases, and he'll keep an eye on President Donald Trump's policies ‒ particularly his administration's plans with tariffs ‒ to see if they drive up food prices. Trump earlier this month paused 25% tariffs on Canada and Mexico for 30 days. "Policies can have an impact on food prices," he said. "We're coming off a period with a lot of disruptions to the agrifood industry, from COVID, Russia's invasion of Ukraine. We need a period of stability, especially when it comes to policy, so that we don't get ourselves into an inflationary period when it comes to food prices again." Michael Swanson, Wells Fargo's chief agricultural economist, pointed to beef prices as another trend to watch. Prices have been up since a 2022 drought forced ranchers to send more cows to slaughter; according to the latest consumer price index, beef prices are up 5.5% from the same month last year. Consumers so far have been willing to pay record prices thanks to recent trends around wage and employment growth, according to Swanson, but prices could drop if demand ebbs.
Yahoo
06-02-2025
- Health
- Yahoo
Here's why eggs might not be on store shelves right now
Bird flu is spreading across the United States, causing egg prices to soar and availability to plummet. Cases of bird flu, or avian influenza, have increased among animals -- including dairy cows, wild birds, poultry and even pet cats. More than 150 million poultry birds have been killed across all 50 states since 2022 in an attempt to combat a strain of bird flu known as H5N1, and those efforts are now leaving grocery store shelve empty where cartons used to sit. MORE: Egg prices may increase up to 20% as top farm tests positive for bird flu: USDA The number of birds affected by the virus has been rising in recent months, with roughly 7 million affected in November, 18 million in December, and 23 million in January, according to the latest figures from the U.S. Department of Agriculture. Over the last 30 days, 125 flocks were confirmed to test positive for bird flu, according to the USDA's Animal and Plant Health Inspection Service. Of the flocks, 81 were on commercial farms and 44 were backyard flocks. Once a bird is infected, the only way to stop the virus from spreading further is to de-populate or cull the entire flock. This can affect the price of eggs. David Ortega, food economist and professor at Michigan State University, told ABC News that when a flock that used to lay eggs is culled, it can take time to get a new flock to start laying eggs again. "Whenever you have a detection, you have to depopulate birds within a given area, and it takes a significant amount of time … to sort of rebuild that flock and for those layers to become productive again," he said. "There's a bit of a biological constraint to this. Producers can't just start producing eggs again if there's quite a bit of a lag." Ortega said the significant rise in the price of eggs can be tied to increased demand, especially because there aren't many effective substitutes for eggs. However, he said he doesn't think the U.S. is experiencing a shortage. "It's not that we have run out of eggs. It's just that, because of the impacts that the bird flu has on the industry and just the way that the supply chains for these products are built, there might be stock outs in certain regions across the country," Ortega said. Earlier this week, Waffle House, a restaurant chain with over 2,000 locations, implemented a 50-cent surcharge per egg given the unprecedented rise in egg prices. MORE: Egg prices may increase up to 20% as top farm tests positive for bird flu: USDA The limited supply of eggs is even leading some to resort to theft. About 100,000 eggs were stolen from the back of a trailer in Antrim Township this past weekend, with a retail value of about $40,000, according to Pennsylvania State Police. Ortega said he expects to see egg prices continue to increase until the number of cases of bird flu starts falling. "So many commercial operations have been impacted and we really need a period -- like a sustained period of a number of months where we don't see the level of bird flu impacts that we've been seeing recently -- for things to start to sort of stabilize," he said. "But if we were to have four to six months of no major impact on commercial operations, then we would start to see the price decrease." As consumers keep their eyes on the egg aisle at their local stores, the USDA announced on Wednesday that a strain of bird flu that had been primarily spreading in wild birds was detected in dairy cattle in Nevada. This is the first detection of this strain of bird flu, known as D1.1, in cattle. The detection was a result of the USDA's national milk testing program that launched in early December. The USDA did not immediately return ABC News' request for comment. Egg affordability is just one of the concerns arising in connection to the avian flu's ongoing surge; human cases of bird flu have also recently emerged, largely among dairy farm and poultry farm workers. Human cases have been diagnosed across the country since April 2024, with 67 confirmed in 10 states as of Wednesday, according to the Centers for Disease Control and Prevention. Most human cases have been mild, with patients fully recovering. So far, just one death has been recorded in Louisiana in a patient over age 65 who had underlying medical conditions. He, and a few of the more severe cases, had contracted the D1.1 strain. The CDC and other public health officials say there is currently no evidence of human-to-human transmission and that the risk to the general public is low. Here's why eggs might not be on store shelves right now originally appeared on
