Why Are Egg Prices Skyrocketing...Again?

We have all been feeling the pressure of rising egg prices. Why are egg prices up so much...again?

The answer illustrates the non-resilient nature of the global food supply system. Let's take a look.

A Financially Honest Look at the Chicken Industry

1. Almost 80 billion chickens a year live in filthy and overcrowded factories and this spreads disease.
2. Disease eviscerates the bird stock and sends prices soaring.
3. Since the living conditions don't change, neither do the economics. Repetitive bird flu spreads through factories, usually to birds, but also to humans and cows, again and again keeping prices high.
4. Can we change the living conditions and thus change the economics? No, changing the conditions would also make the cost higher, eradicating the already slim margins of the industry, which can be negative or as low as $.01 per pound.

As feeding people is not optional but mandatory, this necessitates innovation to find a more efficient, less destructive way to feed a growing population without the constant risk of pandemic.

The Numbers: Chronologically and Economically

The numbers show that bird flu isn't new and that as we continue our intensified factory practices, the bird flus remain uncontained, presenting continued pandemic risks and, therefore, continued economic and health risks.

NB: These numbers do not reflect the other animal-borne pandemics such as African Swine Fever, Classic Swine Fever or Mad Cow Disease.

Chronologically

1997: The first known human infections occurred in Hong Kong, leading to the culling of approximately 1.3 million chickens.

2003-2004: Outbreaks began in Asia, notably in Vietnam and Thailand, and spread to ten countries within weeks.

2005-2006: The virus spread to Europe and Africa, with significant outbreaks in countries like Nigeria and various European nations.

2015: The United States experienced a major outbreak, particularly affecting the Midwest.

2020-2025: A prolonged global outbreak has been ongoing, with significant impacts in North America, Europe, and Asia.

Economically

1. According to a February 2025 CBS News article, over 148 million birds have been euthanized in the U.S. due to the H5N1 strain alone in the past year. This is just one strain of bird flu.
2. Human cases of bird flu were 67 people at the time of the writing of the article, with 1 human death.
3. Egg prices have surged by 37% over the past year, with the cost of a dozen large Grade A eggs reaching $4.15 in December 2024.

Conclusions

The above exemplifies

1. An inefficient and un-resilient system.
2. A system that is prime for innovation to keep

a) prices lower,

b) access to food higher,

c) exposure to disease and rising healthcare costs lower.

What Does this Mean for Investors?

A food system that continues to break due to disease will inevitably, and most likely quickly, experience a transformation via innovation due to necessity. Innovations that are efficient, cut costs and build resiliency have a better chance of being accepted en masse.

En masse adoption can create financial upside and wealth growth, making this sector an attractive investment opportunity.

Specifically, What Can Investors Invest In?

As just an example of innovative companies in the VegTech? ETF, Tate and Lyle and Corbion have created egg replacements for baked goods that can

1) bring down costs,

2) create resilient supply chains,

3) use one less allergen, and thus,

4) appeal to more diets.

In short, these innovations reduce the costs of doing business and thus help to create better company returns.

As the food system shows its weakness, now may be a good time to invest in food system transformation through our VegTech? food innovation ETF. The VegTech ETF aims to capitalize on the potential growth that can come from the necessity of change in the global food supply system.

For more information on VegTech? Invest, visit VegTechInvest.com.

Important: VegTech LLC is an SEC registered investment adviser subject to the Investment Advisers Act of 1940. VegTech provides this material for informational purposes only. The information is not intended to recommend any company or investment described herein, and it is not an offer or sale of any security, investment product, or investment advice. Offers of securities or investment advisory services may be made only pursuant to appropriate offering or other disclosure documents, and only after prospective investors have had the opportunity to discuss all matters concerning the prospective investment or engagement with their adviser and the issues of the securities. For more information, please contact us. It should be noted that past performance is not indicative of future results. Investing in securities involves risk, including the possibility of losing the principal.

This material may contain certain forward-looking statements, projections, and statements of opinion, including statements of financial market trends. Such information can typically be identified by the use of terms such as "may," "will," "should," "expect," "anticipate," "project," "estimate," "intend," "continue," "believe," or comparable terminology. All projections, opinions, and forward-looking statements are based on information available to VegTech as of the date of this presentation and VegTech's current views and opinions, all of which are subject to change without notice. Due to various risks and uncertainties, actual events or results may differ materially from those reflected or contemplated in forward-looking statements. Additionally, information and views presented herein may be drawn from third-party or public sources, which are believed to be reliable but not guaranteed to be accurate or complete. Before making any investment decision, seek expert, professional advice and obtain information regarding the legal, fiscal, regulatory, and foreign currency requirements for any investment according to the laws of your home country or place of residence.

VegTech's strategies are actively managed and not intended to replicate the performance of any cited index. The performance and volatility of VegTech's investment strategies may differ materially from the performance and volatility of a cited index, and their holdings will differ significantly from the securities that comprise the index. You cannot invest directly in an index, which does not account for trading commissions and costs. VegTech LLC is located at 1842 Purdue Ave #103, Los Angeles CA 90025.