Egg Prices Surge in the U.S. Amid Supply Chain Disruptions and Bird Flu Outbreak
The cost of eggs in the United States has been steadily increasing, causing grocery stores to struggle with meeting the demand and leaving shelves empty in many regions. This surge in prices can be attributed to a combination of factors including disruptions in the supply chain, an ongoing bird flu outbreak, and new regulatory changes affecting egg production.
Why Are Egg Prices Rising?
The surge in egg prices is primarily due to the devastating impact of the bird flu outbreak on poultry farms across the country. Millions of egg-laying hens have been culled in an effort to prevent the spread of the virus, leading to a significant reduction in the supply of eggs. Additionally, disruptions in the supply chain and increased transportation costs, along with new state regulations mandating cage-free egg production, have all contributed to the rising prices.
The impact of the Highly Pathogenic Avian Influenza (H5N1) on the poultry industry has been significant, with millions of birds being culled since the outbreak began in 2022. Ricky Volpe, a professor of agribusiness, noted the increasing frequency and severity of avian flu outbreaks in the U.S., stating that the industry has struggled to return to normalcy after each outbreak.
Transportation challenges, such as a shortage of truck drivers leading to higher shipping costs, have also played a role in the price increase. Additionally, laws mandating cage-free egg production in states like California, Michigan, and Colorado have further strained the industry by reducing production capacity.
The Impact on Consumers
The rise in egg prices has had a significant impact on consumers, with prices more than doubling in recent months. The average cost of a dozen large, grade-A eggs reached $4.15 in December 2024, up 14% from the previous month. Some shoppers are even encountering prices as high as $8 per dozen, prompting many grocery stores to enforce purchase limits.
At major retailers like Costco, organic and cage-free eggs are selling for as much as $6 to $8 per dozen. Frustration among consumers is growing as they face high prices and limited availability of eggs.
What the Experts Say
Experts in the industry have expressed concerns about the ongoing challenges facing the poultry industry. David Anderson, a professor in Agriculture Economics, highlighted that egg prices are at an all-time high, while Dr. Kimberly Rollins emphasized the prolonged impact of the avian flu outbreak on egg production.
Looking Ahead
While relief may be on the horizon, it is not expected immediately. The USDA predicts that egg prices may begin to decline by the second quarter of 2025, potentially returning to around $2.50 per dozen by mid-year. However, this projection is contingent on the containment of the bird flu and improvements in the supply chain.
In the meantime, consumers can expect to continue facing high prices and limited availability of eggs as the poultry industry works to recover from one of its most challenging crises in years.