Recall Sparks Demand for Organic Eggs

The recent nationwide recall of some 550 million eggs has consumers clamoring for organic and cage-free eggs, according to a USA Today article. FDA issued an urgent recall of eggs from Wright County Egg and Hillandale Farms after hundreds of illnesses from Salmonella were reported. The recall caused organic and cage-free producers to sell out within hours at San Francisco farmers' market this past weekend. This is an unusual occurrence, according to the article.

The article also highlighted Organic Valleys post-recall orders, which are up an estimated 3 percent to 5 percent. And, National Pasteurized Eggs, which pasteurizes eggs via an all-natural, patented, process, expects to produce 9 million eggs for consumers, including major grocers; this is a major jump compared to the  5 million  it produced last week

The article noted organic producers routinely exceed government safety standards, including more requirements for more salmonella testing.

While demand for organic eggs is up, the demand for conventional eggs is slipping. A Publix grocery chain spokesperson quoted in the article said she has seen a slow in egg sales.

Despite decreased demand, the Publix spokesperson said she expects prices to rises, which may cause even more of a reduced demand. About 550 million eggs were recalled, which is less than 1 percent of U.S. production. Still, supply was disrupted, according to the article. If demand doesnt drop in line with supply, prices are sure to increase.

The recall has already caused the price of eggs to rise for retailers, and USA Today said shoppers may soon be charged more for their egg purchases. The article said wholesale egg prices are up 40 percent since the start of the recall.

According to market researcher Urner Barry Publications, the article said the wholesale price for a dozen large eggs in the Northeast is up 38 percent since the first salmonella-inspired recall on Aug. 13. Other regions have seen similar increases.

The article noted for the past five years, egg prices rose by about 9 percent from early to late August as kids returned to school. With the back-to-school season and the recall, egg prices are skyrocketing.

Still, retailers have not yet passed the increased cost on to consumers, but they are likely to do so in the future. The article quoted Gene Gregory, CEO of the United Egg Producers, who said egg prices are sure to go up, but he said he wasnt sure how much the increase will be.