Person pushing a shopping cart in a supermarket with overlaid images of milk bottles and oil pouring into a container.
CONSUMER AFFAIRS

Neither Milk nor Oil: This Supermarket Product Could Skyrocket in Price

Causes of the Increase in Prices of Everyday Products: Factors Affecting the Cost of Food

In recent days, consumers have noticed an increase in the prices of basic products in the shopping basket. One of the most affected products in recent days has seen a significant increase in its price. This increase has surprised many, who didn't expect such an essential food to experience such rises in such a short time.

Although the price of eggs had already fluctuated in the past, what is happening now is something more significant. In a matter of weeks, the price of a dozen has risen by more than 25%. The question is: why is this happening and what factors are influencing this increase?

A basket of brown eggs on a wooden table with an economic growth chart in the corner.
The price of eggs has increased by 25% | YelenaYemchuk, Monstera Production

Increase in Demand and International Factors

According to a study by the Unique Consumers Organization (OCU), the prices of eggs have risen considerably in just two weeks. The cheapest ones, category M, have gone from costing between 2.07 and 2.10 euros to exceeding 2.60 euros. This increase has been more noticeable in free-range and organic eggs, which have seen even greater increases, around 16% and 20%, respectively.

Experts say there are several reasons behind this increase. First, the demand for eggs has grown significantly, which has caused prices to rise. This phenomenon has been driven by the nutritional characteristics of the egg, which have made it a trendy product.

In 2023, the egg was the fresh food that grew the most in value, with an increase of 8.2%. However, despite the increase in consumption, the supply of eggs hasn't grown at the same rate, which has created a market imbalance.

A thoughtful man in front of egg cartons with question marks in speech bubbles.
The Increase in Grains and Soybeans Raises Prices | Pixelshot, FoxGrafy de CRStocker, Getty Images Pro, ma-no

Additionally, another key factor has been the avian crisis in the United States, which has been affecting production for more than a year. Avian flu has forced the culling of millions of laying hens, which has led to a drop in egg production.

The United States, as a major consumer of this product, has had to turn to other producing countries, such as Spain, to meet its demand. This has created a chain effect, increasing pressure on the international market and contributing to the rising cost of eggs.

The Impact of Production Costs and Exports

The increase in the prices of cereals and soybeans, key foods for hens, has contributed to the rising cost of eggs. With the war in Ukraine, the price of these inputs has risen considerably, which has increased production costs. This has affected many farms, which now face higher costs to maintain their birds.

A woman with a surprised expression covers her mouth with her hands in front of a background of brown eggs.
Avian Flu and Demand Drive Prices | Schwaabe de Getty Images, Jacob Wackerhausen de Getty Images Signature

Meanwhile, the increase in exports has also influenced prices. Many egg-producing countries, including those in the EU, are sending their products to the United States to meet the growing demand. As a result, the local supply of eggs has decreased, which has driven prices up nationally.

The future of egg prices seems uncertain, as the factors driving their increase remain multiple and complex. With demand rising and production costs high, the market will continue to be volatile. Consumers will need to be prepared for higher prices, at least while international problems and supply shortages persist.

➡️ Consumer Affairs

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