
Egg prices in the U.S. have skyrocketed due to rampant inflation and a severe avian influenza epidemic, leaving Americans to wonder if relief is in sight.
Quick Takes
- Bird flu forces the culling of millions of chickens, driving up egg prices significantly.
- The average cost for a dozen eggs is projected to increase by 20% this year.
- Some regions see egg prices more than double the national average.
- Grocery stores implement purchase limits on eggs due to shortages.
Soaring Costs at the Egg Carton
The avian influenza outbreak critically affected egg supplies. The bird flu, spread by wild birds, led to the slaughter of over 145 million birds since 2022, with the most severe impacts seen on egg-laying chickens. Egg prices averaged $4.15 per dozen by December, with predictions indicating a 20% rise this year. In some areas, consumers have encountered even higher costs, particularly for organic and cage-free eggs.
Supermarkets have not been spared the brunt of this crisis, imposing limits on egg purchases to curb shortages. Farmers across the nation face operational challenges, leading to significant outlays on biosecurity measures. “Over the last five years, my small farm alone has spent hundreds of thousands of dollars on biosecurity,” remarked Loren Brey.
Policy Impact and Criticism
White House press secretary Karoline Leavitt has laid blame at the feet of the Biden administration. The mass killing of over 100 million chickens, according to Leavitt, has contributed to a chicken and egg supply shortage, impacting prices across the board. “As far as the egg shortage, what’s also contributing to that is that the Biden administration and the Department of Agriculture directed the mass killing of more than 100 million chickens,” she articulated. Leavitt criticized the administration’s policies as “inflationary,” leading to ballooning costs for basic groceries and gasoline.
“As far as the egg shortage, what’s also contributing to that is that the Biden administration and the Department of Agriculture directed the mass killing of more than 100 million chickens, which has led to a lack of chicken supply in this country, therefore, a lack of egg supply, which is leading to the shortage.” – Karoline Leavitt
The price strain is not only confined to eggs. Prices for turkey, milk, and chicken have also been impacted as the bird flu outbreak didn’t subside, even during typically unfavorable high summer temperatures for such viruses.
Current Trends and Future Outlook
Recent data from Earnest Analytics shows a compelling 28% year-over-year increase in egg prices early in 2024. This marks the steepest YoY incline since mid-2023, highlighting continuing trends. Smaller farms are resorting to various measures like implementing laser deterrents against wild birds to protect their flocks. The USDA’s response has included extensive compensations, exceeding $1.14 billion for the culling of infected birds, underpinning the severity and extent of the outbreak.
“According to Earnest Scanner Consumer Packaged Goods (CPG) product data, this marks the highest YoY price increase since mid-2023.” – Earnest Analytics
The anticipated trajectory suggests egg prices could reach record levels by the end of 2025, with critical consumer choices and political debates expected to steer future directions. With cries from consumers and farmers alike, many hope for prompt policy revisions to stem this economic burden.
Sources
2. Egg prices are soaring. Don’t expect that to change anytime soon