**Washington**: Independent grocers confront financial strain due to ongoing egg shortages linked to a bird flu outbreak, risking stability for both retail prices and consumer access. The National Grocers Association urges the USDA for intervention and flexibility on stocking and price control regulations to alleviate pressure on retailers.
Independent grocers in the United States are facing significant financial challenges as egg shortages continue to disrupt the supply chain, according to a letter sent by the National Grocers Association (NGA) to newly appointed USDA Secretary Brooke Rollins. In the correspondence, dated February 20, 2025, NGA President and CEO Greg Ferrara highlighted the struggle retailers are experiencing to maintain adequate stock levels while also shielding consumers from soaring prices.
The ongoing supply shortages have been primarily attributed to a widespread outbreak of bird flu affecting poultry flocks across the nation. As a consequence, grocers and wholesalers are reportedly “absorbing significant financial losses” in an attempt to keep retail prices stable for customers. Ferrara emphasised that this crisis is expected to persist for an extended period, further straining the limited supply of eggs and sustaining elevated prices for consumers.
Recent data indicates a staggering increase in egg prices, which surged 67% in January compared to the same period the previous year, reaching an average of $6.96 per dozen. Despite the sharp rise in prices, unit sales of eggs have increased by 4% year-on-year, demonstrating a resilient consumer demand. However, the Department of Agriculture has indicated that egg prices might continue to rise, predicting an additional increase of around 20% within the year.
In light of these challenges, Ferrara underscored the need for the USDA to explore and implement scientific resources to mitigate the impacts of the bird flu outbreak. The NGA is advocating for innovative strategies to fortify the domestic egg supply, alongside collaboration with industry stakeholders to enhance recovery efforts and improve supply chain stability.
Furthermore, Ferrara recommended that the USDA instruct state Women, Infants, and Children (WIC) agencies to relax stocking requirements for retailers. For example, in Virginia, WIC-approved vendors must maintain a minimum stock of specific egg products, and failure to comply can result in warning letters during regulatory visits. The NGA is urging for waivers on these minimum stocking requirements given the current supply chain constraints.
Additionally, the letter addressed the need for flexibility regarding price controls for eggs. This suggestion aims to alleviate pressures on retailers who find themselves unable to meet regulatory stock requirements due to circumstances outside their control.
The developments surrounding egg shortages and the responses from independent retailers reflect broader challenges within the grocery sector, with long-term repercussions for both supply chains and consumer pricing strategies.
Source: Noah Wire Services
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