The average cost of a dozen Grade A eggs in American cities skyrocketed to $4.95 in January, setting a new record high, according to the Bureau of Labor Statistics. This surge highlights the challenges currently facing consumers and the food industry alike, amidst ongoing supply issues and a troubling avian flu outbreak that started in 2022.
In contrast, only a few months ago in August 2023, the price of eggs was significantly lower at $2.04, showcasing the volatility in the market. Although the national average is $4.95, prices can climb as high as $10 or more in certain areas, particularly for specialty eggs such as organic or cage-free options.
There is little respite in sight as forecasts suggest prices will continue to rise, especially with Easter on the horizon—an annual period known for increased demand. The U.S. Department of Agriculture has already predicted a potential 20% hike in egg prices this year.
Consumers are not only grappling with escalating prices but also with scarcity. The availability of eggs remains sporadic with some supermarkets imposing purchasing limits to manage supply effectively. The primary catalyst behind this predicament is the persistent bird flu outbreak. To prevent the spread of the disease, entire flocks are culled—a strategy impacting millions of egg-laying chickens and leading to significant gaps in supply.
In recent months, over 23 million birds were exterminated in just one month to control the virus, following another surge where 18 million were affected in December. Although these figures include turkeys and meat chickens, the brunt of this impact is borne by egg-laying hens.
Additionally, the egg farming sector is burdened by the rising costs of feed, labor, and fuel—exacerbated by inflation. These expenses are further compounded by investments in enhanced biosecurity measures designed to safeguard poultry.
The shift towards cage-free egg production, fueled by recent legislative changes in ten states, adds another layer of complexity. States like California, Massachusetts, and Washington have enacted laws mandating cage-free environments, which, while beneficial from an animal welfare perspective, have resulted in a tighter supply chain. When cage-free farms experience outbreaks, the regional scarcity can trigger even more pronounced price spikes.
Many outbreaks have been reported in California, indicating that farms operating under cage-free laws are particularly vulnerable to disruptions. As the demand for ethical and cage-free eggs rises, it underscores the urgent need for robust measures to stabilize supply and control outbreaks.
