Are Socially Distanced Chickens Laying More Affordable Eggs?
Shoppers used to picking up the cheapest eggs at the grocery store may now be reaching for higher-end cartons.
That’s because bird flu is turbocharging prices of commercially produced eggs, while farmers of pasture-raised hens — who say their practices make for more humane, sustainable and tasty eggs — have largely held their premium prices steady. Grocery shoppers may be noticing the price gap narrow or even invert, in some cases making specialty eggs cheaper than conventional ones.
Nationwide Egg Prices Reach Historic Highs
Nationwide, a dozen eggs sold for $4.95 on average in January, up from $2.52 a year earlier, as avian influenza has wiped out poultry flocks and slammed into domestic egg supplies. Through it all, specialty egg distributor Pete & Gerry’s says its dozen-egg cartons have been retailing for about $6.99 over the past 18 to 24 months.
“Our prices are extremely stable, which means our retail partners are offering a really, really stable price to consumers,” said Cameron Whitehead, chief operating officer at the New Hampshire-based company that sells eggs from nearly 300 family farms across New England, the Midwest and the Mid-Atlantic.
The Cost of Conventional Egg Production
Egg cartons come with lots of labels. The U.S. Department of Agriculture designates “cage-free” and “free-range” practices as those allowing hens to roam around to some extent indoors, and gain at least limited access to an outdoor enclosure, respectively. “Pasture-raised” eggs, which aren’t federally regulated, generally means the chickens can leave the barn and venture out to graze and scratch. The “organic” label can apply to any of these and also refers to what the chickens were fed.
The Impact of Bird Flu on the Industry
Egg prices have nearly doubled since January 2024 due to the ongoing bird flu outbreak. (Spencer Platt / Getty Images)
Hens that have room to scamper aren’t any more resistant to bird flu than those that don’t. But farming practices can make a difference in how the illness spreads, experts say, even if there are some trade-offs.
A More Sustainable Approach to Egg Production
“The source of the virus is in the wild birds, so pasture-raised birds would have an increased risk of exposure,” said Andrew Bowman, a professor of veterinary medicine at Ohio State University who studies animal influenza. Fully confined egg farms use netting to keep out wild birds, he said, but if the virus does enter those facilities, it can spread like wildfire among chickens kept in cramped quarters.
Larger operations also tend to require staff and equipment that are shared with other facilities, elevating the risk of spread between farms. But no matter the setup, USDA guidelines require the entire flock to be killed if bird flu is detected even once.
Specialty Egg Distributors Hold Steady
The disease has affected large and small egg producers alike, but smaller and organic operators say their prices aren’t as influenced by supply and demand swings compared with the commercial market.
So far, Pete & Gerry’s has seen minimal impact to its supply, despite the occasional farm hit by bird flu, Whitehead said. The company pays for farmers’ birds and feed, and it offers a set price for their eggs, creating a measure of stability that Whitehead said small family farms — generally those with flocks of fewer than 20,000 hens — appreciate amid the outbreak.
A Small-Scale Egg Farmer’s Perspective
Larry Schultz, a longtime egg farmer in Owatonna, Minnesota, said prices for his organic, free-range eggs mainly reflect input costs like cartons and feed. Those expenses have also increased with inflation, albeit more predictably than supply and demand, he said.
When bird flu hit a larger facility in Schultz’s county in 2023, he said it felt like dodging a bullet. “It’s not like anybody is immune to it,” he cautioned.
A Brighter Future for Specialty Eggs?
About half of the flocks hit by bird flu since 2022 have fewer than 1,000 hens, and roughly 70% number under 30,000, according to USDA data. (The department said its bird flu data isn’t broken down by production types like “organic” or “pasture-raised.”)
Like much of the nation’s agricultural sector, the egg industry has consolidated over time. Fewer than 150 commercial egg farms with flocks of at least 75,000 now house over 95% of egg-laying hens, the United Egg Producers trade group estimates. Among large operators, at least three in Indiana, Ohio, and North Carolina, each with over 250,000 hens, have been affected by bird flu so far this year.
Conclusion
The ongoing bird flu outbreak has put pressure on the egg industry, leading to higher prices for consumers. However, some specialty egg producers are holding steady, and in some cases, their prices are becoming more competitive with conventional eggs. As the industry continues to grapple with the challenges posed by bird flu, it remains to be seen whether the demand for specialty eggs will continue to grow or if the price gap between conventional and specialty eggs will narrow.
FAQs
Q: Why are egg prices increasing?
A: Egg prices are increasing due to the ongoing bird flu outbreak, which has affected domestic egg supplies and led to a shortage of eggs in the market.
Q: What is the difference between cage-free, free-range, and pasture-raised eggs?
A: Cage-free eggs allow hens to roam around to some extent indoors, while free-range eggs allow hens to have limited access to an outdoor enclosure. Pasture-raised eggs, on the other hand, allow hens to leave the barn and venture out to graze and scratch.
Q: Are small-scale egg farmers more resilient to the bird flu outbreak?
A: Yes, small-scale egg farmers tend to be more resilient to the bird flu outbreak, as they often have smaller flocks and are less likely to be affected by supply and demand swings in the commercial market.
Q: Will the demand for specialty eggs continue to grow?
A: It is difficult to predict the future demand for specialty eggs, but the trend towards more sustainable and humane farming practices may continue to drive demand for these types of eggs.
