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Sunday, Mar 16, 2025

Rising Egg Prices in Spain: An Overview of Recent Trends and Causes

Rising Egg Prices in Spain: An Overview of Recent Trends and Causes

Consumer costs for eggs soar as supply and demand dynamics shift, influenced by health crises and changing consumption patterns.
Mercedes Alcántara, a restaurant owner in Lavapiés, has seen her monthly expenses for eggs exceed 700 euros, marking a 33% increase compared to previous months.

This surge comes at a time when consumers like Belén García are also feeling the pinch; she recently paid 3.65 euros for a box of six free-range eggs, roughly 30 cents more than a year ago.

Eggs, a staple in many diets, have thus become a significant financial burden for both consumers and businesses.

According to the Organization of Consumers and Users (OCU), egg prices reached a peak in February 2023. Data indicates that the price for a dozen medium white-label eggs rose from 2.05 euros to 2.14 euros over nine months, a nearly 5% increase.

This rise contrasts sharply with the general consumer price index, which increased by 2.5% during the same timeframe, and the food index, which recorded a mere 2.1% rise.

The National Institute of Statistics reports that between February 2022 and February 2025, the cost of eggs has escalated by nearly 40%, making it the second highest priced food after olive oil.

Notably, unlike olive oil, the price of which has dropped by 25% over the past year, egg prices continue to climb, with an additional 4% increase noted in this period.

Several factors contribute to the rising prices of eggs.

Increased consumption across Europe and the impacts of avian influenza in various nations are significant contributors.

Mari Luz de Santos, director of the Spanish Federation of Egg and Ovoproducts Producers (Federovro), notes that the egg's popularity has surged due to its status as an affordable and healthy protein source.

However, she also highlighted that the ongoing avian influenza outbreak in Northern Europe has been detrimental to supply, resulting in the loss of approximately 15 million laying hens in recent months.

Although Spain has reported no cases of avian flu since February 2023, the price increases in the country are not directly attributed to this issue, unlike in the United States, where the disease has significantly affected egg supplies and driven prices to record highs.

Spain, which accounts for 14% of the European egg production volume, traditionally exports about 20% of its annual production.

The potential for increased exports due to outbreaks elsewhere in Europe is considered plausible, although concrete statistics are not yet available.

Juan Roig, president of Mercadona, attributed the spike in egg prices—reportedly between 15% to 20%—to the mortality of hens in the U.S. due to avian flu, referring to it as a supply shock that may catalyze a rise in Spanish exports due to shortages in the American market.

Consumer demand within Spain has also seen an uptick, with households reportedly consuming 3.2% more eggs, bringing the per capita consumption close to nine kilograms, as indicated in the latest Food Monthly Report from the Ministry of Agriculture, Fisheries, and Food.

This report also reflects an increase in the average value of purchases, albeit less than the figures reported by OCU.

Analyzing the price dynamics from farm to supermarket, the Toledo market quotes indicated that as of late February, prices ranged from 1.74 euros for a dozen caged hens' eggs to 2.70 euros for extra-large free-range eggs, marking a week's price increase of 12 cents.

Comparatively, last year saw prices of 1.38 euros and 2.41 euros for the same categories, indicating a rise of between 10% and 20%.

Sources from the distribution sector contend that while the price of eggs at the source has climbed by approximately 15%, the increase faced by consumers is less than half that amount, asserting that this does not translate into increased profit margins.

OCU reinforces that, from a cost perspective, such substantial price increases are unwarranted, as other agricultural products with similar production costs have seen more moderate price adjustments.

Amid these challenges, some consumers express concern about the reimplementation of VAT on eggs, which had been set at 0% for two years.

The tax has been progressively increasing since July 2024, with a return to the standard 4% as of January.

Federovro indicates that the impact of this tax is minimal when assessed against purchase values, suggesting that an increase from 0% to 4% on a two-euro dozen of eggs equates to just eight cents, totaling an additional 1.12 euros for annual average consumption.
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