The recall of 550 million eggs has boosted wholesale prices 40% in the last two weeks. Experts say that will translate into higher egg prices in the stores within the next two weeks.The price of your morning omelet will likely rise within the next two weeks, following the massive recall of 550 million eggs linked to salmonella.

Since the Aug. 13 recall two weeks ago, wholesale egg prices in the Northeast and Midwest, for example, have soared nearly 40%, according to the U.S. Department of Agriculture.

"When the wholesale market goes up by 50%, the retailers have to pass it along," said Len Steiner, a principal with food industry consultant Steiner Consulting. "They'll probably pass the increase along next week or the week after that."

Ouch.

An About-Face for Egg Prices

The expected leap comes after consumers have enjoyed five consecutive months of falling retail egg prices, which have dropped from an average of $1.87 for a dozen large Grade-A eggs in February to $1.44 in July, according to the U.S. Bureau of Labor Statistics' Consumer Price Index report.

On top of that, the average price of store-bought eggs hasn't hit north of $2 for the past two years. But that will likely change soon. Wholesale prices are expected to rise between $1.05 to $1.45 per dozen this week alone, and that's before factoring in the additional markups at the stores.

wholesale egg prices

Before rushing out to snap up eggs today, consumers may want to cool their heels, Steiner said. Grocery outlets can't turn on a dime to change prices, nor do they want to create yo-yo pricing that could confuse and irritate customers, so any price hike likely won't take affect until next week, or possibly the following week, he said.

Good News for Organic Eggs

The higher wholesale egg prices bode well for organic egg producers, whose products tend to cost more. The organic egg market is already benefiting from the recall's fear factor, as well as a level pricing field.

The climbing egg prices come not only from the Wright County Egg and Hillandale Farms recall of a total of 550 million eggs, which has reduced the supply, but also from a seasonal rise in demand as school starts and parents increase their efforts to serve up a hot morning meal.

Indeed, the rising wholesale prices suggest that the recall hasn't put a damper on egg demand, because prices would likely have remained soft if demand had dropped.

Maybe that's why the American Egg Board calls it the incredible, edible egg...

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Mary

My small backyard flock just started laying eggs 10 days ago. Just in time! Delicious!

August 27 2010 at 10:39 AM Report abuse rate up rate down Reply
chaspharrington

ONLY IN AMERICA CAN YOU PUT OUT A BAD PRODUCT AND THEN RAISE THE PRICE ON THE IT! PERSONALLY I DO NOT PLAN TO BUY ANY EGGS AND PEOPLE MUST REMEMBER A LOT OF "SO CALLED ORGANIC" EGGS ARE STILL OWNED AND OPERATED BY LARGE CORPORATIONS OR WHATEVER YOU PREFER TO CALL THEM! A BAD EGG IS A BAD EGG!

August 27 2010 at 9:41 AM Report abuse rate up rate down Reply
martbild

Who didn't see this coming?

August 27 2010 at 9:38 AM Report abuse +1 rate up rate down Reply
kennedycolev

since i always eat organic eggs, i think this is great. hopefully this will convince more people to switch to organic, which would result in the expansion of the market and lower prices.

August 27 2010 at 9:37 AM Report abuse +1 rate up rate down Reply
jgrl360

don't large corporations, such as these egg farms carry liability insurance in case something like this happens? and won't they turn around and sue their suppliers if its in the feed? then why do our prices increase - sounds like they make a profit to me - same as when gas prices jump at the pump overnite based on the price of Oil that day - yet deliveries don't come in till the end of the week - station owners blame it on the distributors etc. WAKE UP AMERICA WE ARE BEING RIPPED OFF~!!

August 27 2010 at 9:32 AM Report abuse rate up rate down Reply
mac2jr

We need to add ten thousand new jobs in the Government, ten thousand FDA Inspectors .....

August 27 2010 at 9:17 AM Report abuse -1 rate up rate down Reply
mac2jr

KEEP Government out of the For-Profit, Private Sector, but oh oh, HELP, where were the FDA Inspector, how is the government helping us during this sickness and recall? We yell for Government help when the For-Profit, Private Sector screws up, but yell that we don't want government in our lives... ???

August 27 2010 at 9:16 AM Report abuse +1 rate up rate down Reply
mac2jr

'As an egg producer I promise I will drop the price of eggs back to normal as soon as this crisis that I caused by not doing my job properly is over' - Yep, don't bet on it.......

August 27 2010 at 9:14 AM Report abuse +2 rate up rate down Reply
fishlover

let just blame on those hens did not do there jobs while FDA sit on the egg.

August 27 2010 at 9:13 AM Report abuse +2 rate up rate down Reply
malcolm

penalize consumers for the producers screw up..filthy sobs..i don't eat eggs anyway, they can shove it up their chicken a$$

August 27 2010 at 8:10 AM Report abuse rate up rate down Reply