AGRICULTURE Rise in demand leads to increased egg prices

Eggs are back in favor with consumers as health concerns ease.
WASHINGTON (AP) -- It doesn't matter if they are sunny-side up, hard-boiled or scrambled. Consumers are paying far more than a dime a dozen for eggs these days. More like a dime per egg.
Supermarket prices for eggs have risen to $1.20 per dozen -- 32 percent more than a year ago, the Agriculture Department says. Last year, consumers paid 91 cents for a dozen Grade A eggs.
It's a combination of a tight supply of eggs and stronger demand, resulting in higher prices, says Shayle Shagam, a department analyst.
Government figures show consumers eat an average of 253 eggs a year, compared with 235 a year in 1991.
Often, people are not aware of eggs in their diet. For example, dried eggs are an important ingredient in many easy-to-make food products and baked goods.
Consumption had tapered off in the 1980s and early 1990s after scientists began to question whether eggs were contributing to heart problems because of their cholesterol.
An egg supplies about 200 milligrams of cholesterol -- 70 percent of the daily recommended intake.
Demand, prices fell
Prices followed consumption downward. Wholesale prices, for example, fell 22 cents a dozen from 1996 to 1999. Farmers adjusted accordingly.
Some sent laying hens to slaughter to shrink supply and push up egg prices. Other farmers went out of business.
In 1999, a Harvard study concluded that eating one egg every day did not contribute significantly to a rise in heart disease. Since then, eggs have made a gradual comeback.
"Some of the health concerns that existed with eggs in prior decades have sort of been mitigated by the fact that if you eat eggs in moderation, you're OK," Shagam said. "So consumers are not as leery about eating eggs as they had been."
Jim Dean, president of Center Fresh Egg Farm in Iowa and vice president of Oskaloosa Food Products, said trends in the restaurant industry also are helping egg sales. Popular among consumers, he said, are new breakfast sandwiches featuring eggs, such as the McGriddle at McDonald's.
Foreign demand also has increased, particularly by the European Union.
In 2000, the United States exported 2 billion eggs, compared with 1.9 billion in 1999. American farmers produced about 84 billion eggs in 2000.