OMAHA, Neb. — The price of eggs has reached unprecedented levels as the country grapples with a persistent outbreak of bird flu. Consumers are becoming increasingly aware of these soaring costs, which have made eggs both pricey and at times scarce.
According to newly released monthly data, the average cost for a dozen Grade A eggs surged to $4.95 in January, surpassing the previous record of $4.82 from two years ago. This price is significantly higher than the more affordable low of $2.04 recorded in August 2023.
The rising egg prices have become a significant factor in overall food inflation, reflecting the largest hike since the bird flu issue emerged in 2015. These price increases accounted for approximately two-thirds of the overall food cost rise last month, as indicated by statistics from the U.S. Bureau of Labor.
However, it’s essential to note that this figure represents a national average, and in some regions, a carton of eggs may carry a price tag of $10 or more. Specialized options, including organic and cage-free eggs, can be even more expensive.
“I’ve cut back on how often I buy eggs,” remarked Jon Florey while browsing the egg section at Encinal Market in Alameda, California. “I had plans to make my favorite quiche, which requires six eggs, but I think I’ll have to find an alternative.”
When can consumers expect relief from these high prices? Unfortunately, the outlook isn’t optimistic. Historically, egg prices tend to rise around Easter due to heightened consumer demand during the holiday season. The U.S. Department of Agriculture recently forecasted a potential 20% increase in egg prices over the course of this year.
For those who can afford eggs, availability remains an issue. Many grocery stores are struggling to keep their egg supplies stocked, leading to surcharges and limitations on how many cartons customers can purchase at one time. Joe Trimble, the owner of Encinal Market, dispensed insight into his challenges, stating he often only receives enough eggs to fill 25% of his shelves.
“It’s alarming when you realize how empty the shelves are,” Trimble noted. Eggs are a staple in many households and are often expected to be readily available, much like milk. On a Saturday morning, many people desire eggs for breakfast without wanting to search for alternatives.
What’s contributing to the increased egg prices? The continuous bird flu outbreak is the primary factor. When the virus is detected on a farm, the entire flock is typically culled to prevent further infection. With large egg production facilities often housing millions of birds, any outbreak significantly impacts the supply. Since the onset of this outbreak, nearly 158 million birds have been culled.
Figures from the Agriculture Department reveal that over 23 million birds were slaughtered last month alone, adding to the more than 18 million losses reported in December. These numbers encompass not just egg-laying chickens but also turkeys and chickens raised for meat, with egg-layers making up the bulk of the losses.
The aftermath of an outbreak leads to prolonged delays, as it takes several months to safely dispose of carcasses, disinfect the facilities, and rear new flocks until they reach egg-laying maturity. The seasonal migratory patterns of wild birds, often linked to spikes in bird flu cases, can exacerbate this situation, and while bird flu can also affect other animals, the risk to human health is considered low. Health officials emphasize that properly cooked eggs and poultry pose no risk, as the cooking process eliminates the virus.
In addition to the bird flu, egg producers are facing rising costs for feed, fuel, and labor, all of which are driven by inflation. Investments in biosecurity to protect poultry flocks against disease are also necessary.
Furthermore, ten states have enacted legislation mandating the sale of eggs exclusively from cage-free farms, creating a tighter supply that can lead to exaggerated price increases during outbreaks in these facilities. Notably, several recent outbreaks have occurred in cage-free production settings in California, where strict laws have already come into effect.
Consumer demand for eggs has also been rising sharply in recent years, fueled in part by the popularity of all-day breakfast establishments. Analyst Brian Earnest from CoBank noted that the current high prices may deter some buyers, which could alleviate demand a bit but might not produce immediate results in terms of supply stabilization.
With Easter approaching, the combination of consumer purchasing and limited supply may sustain the pressures on egg availability for some time. As long as prices stay elevated, baked goods and other food products that rely heavily on eggs will face decisions regarding price increases or potential production cutbacks.
