Egg Prices Soar Amid Bird Flu Outbreak: How Bakeries Are Coping
The Current Crisis: Egg Prices Hit Historic Highs
The price of eggs has skyrocketed in recent months, leaving bakeries and consumers scrambling to adapt. Scott Auslander, general manager of Bread Furst, a popular bakery in Washington, DC, has seen firsthand the unprecedented rise in egg costs. “Our suppliers are telling us that they don’t know when egg prices are going to come down—or if they’re going to come down,” Auslander told CNN. Bread Furst, which uses about 150 eggs daily, is now paying more than double what it paid for eggs just a year ago. The bakery has already raised prices for its egg-heavy items, including its signature “messy egg sandwich,” which now costs a dollar more.
This surge in egg prices is not isolated to Washington, DC. Nationwide, egg prices are at historic highs, driven by a severe bird flu outbreak that swept across the country last year. The highly pathogenic H5N1 virus infected flocks, leading to the deaths of over 40 million egg-laying chickens, according to the US Department of Agriculture. This drastic reduction in supply has caused egg prices to soar. Wholesale fresh egg prices were 186% higher in January compared to the same month last year, marking the fourth-largest annual increase since records began in 1992.
Bakeries Struggle to Keep Up: Raising Prices and Exploring Alternatives
With egg prices showing no signs of dropping, bakeries are being forced to take drastic measures to stay afloat. Many have already raised prices, while others are considering alternative ingredients to reduce their reliance on eggs. Werner Simon, owner of Manhattan Sweets Boutique Bakery in New York, revealed that his bakery is planning to raise prices in the coming weeks. However, Simon is also exploring the use of “egg replacers,” a product that contains some egg yolk and soy, which can replace up to 10% of eggs in certain recipes.
Despite the potential cost savings, Simon expressed concern about compromising the quality of his bakery’s pastries. “There’s a limit to how much you can replace eggs before the product starts to lose its integrity,” he said. This dilemma is one many bakeries are facing as they try to balance affordability with quality.
The Rise of Plant-Based Alternatives
As traditional egg prices remain high, some bakeries are turning to plant-based alternatives to ease the strain. Eat Just Inc., a company that produces plant-based egg products designed to mimic the taste and texture of chicken eggs, has seen a surge in demand. Over the past month, its sales to major retailers like Walmart, Whole Foods, Kroger, and Publix have been five times higher than the same period last year.
Josh Tetrick, CEO of Eat Just, explained that the company has had to ramp up production to meet the sudden increase in demand. “It usually is us reaching out to places” to market our products, Tetrick said. “But over the past few weeks, it’s been the opposite. Retailers are reaching out to us.” To keep up with orders, the company has expedited ingredient and packaging deliveries and scheduled extra production days. While this has squeezed profit margins, Eat Just is holding off on raising prices in hopes of attracting long-term customers.
Beyond Eggs: Other Challenges Facing Bakeries
The egg crisis is just one of several challenges bakeries are currently navigating. Werner Simon of Manhattan Sweets noted that his bakery is also grappling with skyrocketing cocoa prices, which are adding further strain on profits. “None of this is sustainable because we’re also dealing with sky-high cocoa prices,” Simon said. “There’s not much more we can do at this point.”
In Washington, DC, Scott Auslander of Bread Furst has implemented new measures to make the most of the eggs they do have. For example, he recently trained a new staff member to ensure every last bit of egg is used in baking and cooking, even if it takes extra time. “We’ve really never had to think about the cost of eggs until now,” Auslander said.
Communicating Price Increases to Customers
Raising prices is never an easy decision for businesses, especially for small bakeries that rely on customer loyalty. Charles Lindsey, a marketing professor at the University at Buffalo School of Management, explained that price hikes often lead to customer dissatisfaction. However, he noted that businesses can mitigate the negative impact by being transparent about the reasons behind the increase.
Kerri Francis Bradley, co-owner of D Light Cafe & Bakery in Washington, DC, echoed this sentiment. Her bakery has already seen the cost of a 30-dozen box of eggs rise from $50 to over $200, and she expects that she will eventually have no choice but to raise prices. When that happens, Bradley plans to communicate the change clearly to her customers. “When you make any price change, people get upset no matter what you do,” she said. “Whenever we do, we’ll probably post it on our social media page, make sure our front-of-house staff are educated on what to say and how to explain it, and put up some signage so people know—and hopefully, people will continue supporting small businesses.”
By being open and honest about the challenges they face, bakeries like Bread Furst, Manhattan Sweets, and D Light Cafe hope to maintain the trust and support of their customers during this difficult time.
