ONLINE Dan Fulleton Farm Equipment Retirement Auction
THIS WILL BE AN ONLINE AUCTION Visit bakerauction.com for full sale list and information Auction Soft Close: Mon., March 3rd, 2025 @ 12:00pm MT Location: 3550 Fulleton Rd. Vale, OR […]
Published 6:00 pm Tuesday, March 31, 2020
Oakdell Egg Farms and other producers have been scrambling to meet retail demand that has spiked in recent weeks as consumers stock up on eggs during coronavirus-induced stay-at-home orders.
“Recently we’ve had to do some things we’ve never had to do to allocate product based on availability amid exceptional demand,” said Cliff Lillywhite, Oakdell’s president and co-owner, in a March 30 interview. “This is a once-in-a-lifetime situation.”
Oakdell is the largest egg producer in the Intermountain West.
Shell egg prices have skyrocketed in the past month as demand shifted from foodservice and institutional channels to grocery stores. Retailers responding to the surge in at-home consumption had also been trying to stock up as Easter approaches. Some shortages have occurred as a result.
USDA reported wholesale egg prices nearly doubled and in some cases nearly tripled between late February and late March. Midwest large white eggs delivered to warehouses sold for 87 cents per dozen on Feb. 28 compared to $2.25 on March 27. California large benchmark eggs sold for $1.66 on Feb. 28 and $3.07 on March 27.
Lillywhite’s company operates egg farms in Pasco, Wash.; Franklin, Idaho; and Lewiston, Utah, under the Oakdell and Ritewood banners. He said on the company website that many stores “are now getting back to their normal supply of eggs, but some shortages may still occur for a short period of time. … We are doing our best to quickly resolve this issue to better meet your needs.”
With foodservice essentially shut down, most meals are eaten at home, causing additional demand at grocery stores.
“This is the first time I can recall having to limit supply like we have in the last three weeks or so,” he told Capital Press.
Lillywhite on March 26 advised retail clients that their egg sales could be 20-25% higher until schools reopen and social distancing is no longer an issue.
Oakdell should have enough to cover normal orders, “but the extraordinary demand and upcoming Easter have resulted in a plummeting, low national inventory of available eggs,” he said.
National egg supplies are about a quarter below year-ago levels and at their lowest in several years, he said.
“We are aware some Americans have faced empty store shelves and egg cases early in the outbreak, and we understand these concerns,” United Egg Producers President and CEO Chad Gregory said in a statement. “UEP’s farmer-members are committed to producing a consistent supply of eggs and are partnering with their customers to restock egg cases across the U.S.”
Oakdell works with retailers to keep them informed on egg availability and discuss any items that may have to be substituted — such as moving from one size to another, or from a store’s brand to Oakdell’s.
“I really think we are about caught up” in meeting retailer demand, Lillywhite said. “We appreciate their patience because it has been extremely challenging for us to go through. We don’t want to let our customers down.”
He said the company is not passing on all of its cost increases. Recently higher internal costs include increased employee hours, additional sanitary steps and much higher prices it pays to buy eggs on the open market if its own supply runs short.
Boosting capacity can’t be done immediately, Lillywhite said. Chickens, which lay about an egg a day on average, don’t start producing until they are 22 to 24 weeks old.