Organic Egg Sales Trend Higher

Organic Egg Sales Trend Higher

Organic egg sales volumes continue to rise at a robust pace in January, according to The Jacobsen. The overall notional value of sales has been climbing despite a small increase in organic egg prices. According to the AMS, organic eggs’ price has increased approximately 2% year over year during the pandemic. The cost of large brown organic eggs has averaged $3.95 per carton over the past 12-months ending January 31, 2021. This price level compares to $3.88 per carton during the prior 12-month period. Prices continue to around the average based on seasonal swings.

Most organic egg sales gains have come from the volume of eggs sold at supermarkets and big-box stores. According to The Jacobsen, the number of units sold in the 12-months ending January 31, 2021, increased by 17% year over year. This increase compares to a 19% increase in the total notional value of organic egg sales at supermarkets during the same period. This scenario tells us that unit sales are driving total sales instead of the price of organic eggs.

organic egg sales index from the jacobsen

Despite the rise in organic egg sales, there has yet to be a corresponding increase in the organic laying hen flock size. What has occurred is that the layer rate has increased to more than 80%, according to the AMS, up from 77% in 2020.  Keeping the organic flock size stable and improving the layer rate works in tandem with the decarbonization mandate that is likely to be forged by the Biden Administration. While The Jacobsen expects feed demand to increase year over year, there will need to be a corresponding increase in the flock size to catch up to the demand for organic eggs at the retail level for this to be accomplished.

 

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