Rising egg prices drive demand for alternatives • TechCrunch

Should startups go all-in or wait and see?

Price parity with traditional foods is one of the main challenges for alternative protein startups. However, bird flu, a shortage of cage-free eggs and a subsequent price increase at the end of 2022 seem to provide an “in” for alternative egg companies to show that they can be competitive.

The price of eggs jumped from a few dollars, depending on geographic location, to more than $5 a dozen in December as bird flu spread through all 50 states, killing millions of chickens and turkeys and forcing shoppers to rethink buying the pantry staple and future meal. plans. New data from the Bureau of Labor Statistics shows that egg prices rose 8.5% between December and January, while year-over-year prices jumped 70%.

There’s good news: Bird flu cases plummeted in January with fewer than 500,000 total poultry deaths, down from more than 5 million in December, according to data from the US Department of Agriculture. However, USDA chief veterinarian Rosemary Sifford told the Wall Street Journal that it may be short-lived. She said when wild birds migrate in the spring, the virus is likely to reappear.

While this may seem like an opportunity, I’ve spoken with egg-based startups and investors to see if alternative egg companies can and should take advantage and rush to bring their product to market or expand their consumer base.