Eggs are getting more expensive and intermediaries are raising their profit margins

BarcelonaThat the price of eggs has risen in recent months is undeniable, and the avian flu outbreak, which has forced the confinement of poultry farms, isn't helping to lower prices. But in addition to the increased price per dozen, the gap between the farmgate price—what the farmer receives—and the price the consumer pays in the store has also widened. The agricultural organization COAG has long compiled the IPOD, a monthly indicator of the price difference between various food products at the farm gate—fruits, vegetables, meat, and others—and the price paid by the consumer. In the case of average-sized eggs, which this organization analyzes, the gap has grown considerably this year.

Thus, in January, the farmgate price of a dozen eggs was €1.74, while the retail price was €2.40. In other words, consumers were paying 38% more for eggs than the farmers received. By October of this year, the difference had widened. The farmgate price was €1.97 per dozen, while the retail price was €3.15. This means consumers were paying 60% more than the producers received. The November IPOD (Price Index of Origin and Destination) is not yet available, but egg prices have risen even further in recent weeks. The Bellpuig fish market, a benchmark for this product, was currently selling a dozen large eggs (sizes S, M, L, and XL) for €2.58, compared to €2.32 two months ago. This represents an increase of over 12%.

Spain has surpassed the hundred or so outbreaks of highly pathogenic avian influenza in wild birds so far this year, with eight cases detected in the last week in areas of Castile and León, Navarre, and Aragon. This has led to the confinement of poultry to prevent contagion.

Overproduction in the State

Spanish Agriculture and Fisheries Minister Luis Planas stated on Monday from Brussels that he sees no risk of egg shortages in Spain despite the avian flu outbreak. "No, no, not at all," he declared after being asked if he anticipates a potential shortage in Spain. Planas explained that Spain's egg production is "120%" of its consumption, and that the remaining 20% is exported.

"Now, producers and marketers are adjusting these figures, and therefore, I also appeal for realism on this matter. A single product doesn't alter the price of food or, in general, the cost of living; we saw that last year with olive oil, which was very, very high.

On another note, the Department of Agriculture has held a virtual meeting with representatives of the poultry sector to address the avian flu crisis. Although there are no outbreaks in Catalonia, Minister Òscar Ordeig explained that the meeting is to reinforce biosecurity measures, be as strict as possible with regulations, and establish some "complementary measures."