US egg price rise (by 42%) and global supply chain impact

An article in the Wall Street Journal (June 14, 2013) describes a 42% rise in US egg prices and explores possible reasons. One key reason is the avian influenza in Mexico that has created a dramatic demand increase in US egg exports to Mexico, to 12.8 million dozen in the first four months of 2013, from 0.5 million dozen in 2012. While this surge has created expanded production and the new prices have started dropping from $1.25 per dozen down to $0.87 cents, the story does show the global linkage between local outbreaks and global impacts. How should egg consumers pan for such price volatility and will the demand return if consumers start changing their food habits ? Should there be some export management to prevent the consequent price volatility or are the markets better at managing such shifts themselves, using price signals ? Given the increased consumer fear about food sources, how should food supply chains be managed by food retailers to assist consumers ?

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About aviyer2010

Professor
This entry was posted in Global Contexts, Operations Management, Supply Chain Issues and tagged , , , , , , , , , , , , . Bookmark the permalink.

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