Egg Prices Hit Record High of $4.95 and Likely to Keep Climbing

Egg prices have hit a record high as the U.S. contends with an ongoing bird flu outbreak, but consumers didn’t need government figures released Wednesday to tell them eggs are terribly expensive and hard to find at times.

The latest monthly consumer price index showed that the average price of a dozen Grade A eggs in U.S. cities reached $4.95 in January, eclipsing the previous record of $4.82 set two years earlier and more than double the low of $2.04 that was recorded in August 2023.

The spike in egg prices was the biggest since the nation’s last bird flu outbreak in 2015 and accounted for roughly two-thirds of the total increase in food costs last month, according to the U.S. Bureau of Labor Statistics.

Of course, that is only the nationwide average. A carton of eggs can cost $10 or more in some places. And specialized varieties, such as organic and cage-free eggs, are even more expensive.

"We do use eggs a little less often now. You know, because of the price," said Jon Florey as he surveyed his options in the egg case at Encinal Market in Alameda, California. "I was going to make a quiche that I like to make and it’s about six eggs, so I figured I’d do something else."

When are egg prices expected to go down?

Relief is not expected any time soon. Egg prices typically spike around Easter due to high holiday demand. And the U.S. Department of Agriculture predicted last month that egg prices were likely to go up 20% this year.

Even if shoppers can afford eggs, they may have difficulty finding them at times. Some grocers are having trouble keeping their shelves stocked, and customers are encountering surcharges and limits on how many cartons they can buy at a time.

Encinal Market owner Joe Trimble said he has a hard time getting all the eggs he orders from his suppliers, so most of the time his shelves are only about 25% full.

"It’s something you don’t think about until you look at the shelf and it’s nearly empty," Trimble said. "Eggs are ‘just expected to be there’ in the same way you expect there to be milk. It’s a key item to have in a grocery store because people don’t go out looking for something else to eat on a Saturday morning. They want it. They want to have some scrambled eggs or over-easy eggs on a Saturday morning."

How bad is the bird flu outbreak?

The main reason that eggs are more expensive is the bird flu outbreak. When the virus is found on a farm, the entire flock is killed to limit the spread of disease. Because massive egg farms may have millions of birds, just one outbreak may put a dent in the egg supply. Nearly 158 million birds have been slaughtered overall since the outbreak began.

The Agriculture Department says more than 23 million birds were slaughtered last month and more than 18 million were killed in December to limit the spread of the bird flu virus. Those numbers include turkeys and chickens raised for meat, but the vast majority of them were egg-laying chickens.

What else is driving egg prices up?

Egg farmers also face higher feed, fuel, and labor costs these days because of inflation. Plus, farmers are investing more in biosecurity measures to try to protect their birds.

Ten states have passed laws allowing the sale of eggs only from cage-free environments. The supply of those eggs is tighter and focused in certain regions, so the effect on prices can be magnified when outbreaks hit cage-free egg farms.

Many of the egg farms with recent outbreaks were cage-free farms in California. Cage-free egg laws have already gone into effect in California, Massachusetts, Nevada, Washington, Oregon, Colorado, and Michigan.

Total demand for eggs is also up significantly in recent years. Consumers are buying more eggs, and the growth of all-day breakfast restaurants is adding to demand.

Conclusion

In conclusion, the current bird flu outbreak and other factors have driven egg prices to a record high of $4.95, with no relief in sight. Egg prices are expected to continue to rise, and consumers should be prepared for higher prices and potential shortages.

FAQs

• Q: Why are egg prices so high?
  A: Egg prices are driven by the ongoing bird flu outbreak, which has led to massive egg farm shutdowns and supply chain disruptions.
• Q: When will egg prices go back down?
  A: The U.S. Department of Agriculture predicts that egg prices will continue to rise 20% this year, with no relief expected until the bird flu outbreak subsides.
• Q: Are cage-free eggs more expensive?
  A: Yes, cage-free eggs are often more expensive due to higher production costs and tighter supply.
• Q: What can I do to reduce my egg costs?
  A: Consider reducing your egg consumption, buying in bulk, or looking for alternative egg sources.