In January, the price of a dozen eggs in the United States soared to an unprecedented $4.95—a 15% surge—with projections indicating further increases. According to the Bureau of Labor Statistics, this figure represents the average cost for a dozen grade A eggs nationwide, although prices can exceed $10 in certain areas. Premium varieties, like organic or cage-free eggs, command even higher prices.
Reports from numerous supermarkets reveal customers stockpiling as many egg cartons as they can find. Some stores have exhausted their supplies, while others have implemented purchase limits. For instance, Walmart has restricted purchases of 60-count cartons to two per customer "to ensure more shoppers have access to eggs," a company spokesperson told CBS News.
Unfortunately, there is no expectation of a price decline; in fact, the opposite is anticipated. The Department of Agriculture forecasts a 20% increase in egg prices this year. The only silver lining is that future price hikes are expected to occur at a slower pace. January's spike is likely an "outlier," according to EY's chief economist, Gregory Daco.
The ongoing avian influenza outbreak, which began in 2022, is the primary driver behind this phenomenon, necessitating the culling of millions of birds across the country. The Department of Agriculture reported over 23 million birds culled in January alone, following December's 18 million. While turkeys and broiler chickens have been affected, laying hens have been hit hardest. When the virus is detected on a farm, the entire flock must be culled to prevent further spread.
In 2024, nearly 40 million laying hens were lost or culled due to avian flu. Sharon Linsenbardt, who runs Barn Buddies Rescue and Sanctuary in Las Vegas, a nonprofit focused on rescuing mistreated or abandoned farm animals, explained that the massive loss of hens cannot be quickly replaced, yet demand remains steady. With supply dwindling, prices naturally rise.
Avian flu continues its impact on farms and animals alike. David Anderson, an agricultural economics professor at Texas A&M University, suggests that egg supplies will likely remain constrained as long as outbreaks persist. He also notes a shift in American dietary preferences toward protein-rich foods, which might exacerbate the crisis. "This nutritional trend, as people incorporate more protein into their diets, increases overall egg demand and establishes a higher demand baseline," he stated.
Experts assert that to see a reduction in prices, the country must contain the avian flu and replace aged and sick chickens, a process that could take months.
Understanding the Egg Price Crisis in the U.S.
Why have egg prices increased so dramatically in the U.S.?
The significant rise in egg prices is primarily due to an outbreak of avian influenza, which has led to the culling of millions of birds, reducing supply while demand remains stable.
What are supermarkets doing in response to the egg shortage?
Many supermarkets are limiting egg purchases to ensure more customers can access them, while others have run out of stock entirely.
How is avian flu impacting egg production?
Avian flu has forced the culling of entire flocks when detected, particularly affecting laying hens, which significantly reduces egg production.
What needs to happen for egg prices to decrease?
To lower egg prices, controlling the avian flu outbreak and replacing older and sick chickens are crucial steps, which may take several months.