Inflation, Supply Chain Issues, and Bird Flu Drive Up Egg Prices Across the U.S.
Consumers across the U.S. are facing soaring egg prices, with costs reaching record highs in February due to ongoing supply chain disruptions and a severe outbreak of Highly Pathogenic Avian Influenza (HPAI), commonly known as bird flu. According to the Bureau of Labor Statistics, egg prices have risen 58.8% year over year and 12.5% month over month, leaving many households struggling with the impact of food inflation.
Nationally, the average price for a dozen large Grade A eggs hit $5.90 in February, shattering the previous high of $4.95 in January. Just a year ago, the same product was priced at around $3 per dozen, illustrating the rapid increase in costs.
The spike in egg prices is a significant component of overall grocery inflation, which is up 1.9% year over year. Other breakfast staples have also seen price increases, adding to consumer frustration:
- Bacon: Up 2.7%
- Coffee: Up 6%
- Frozen non-carbonated juices (such as orange juice): Up nearly 7%
Bird Flu Outbreaks Are Worsening Supply Chain Disruptions
The biggest factor behind rising egg prices is the continued spread of bird flu, which has devastated poultry farms across the country. The highly contagious virus forces farmers to euthanize entire flocks when an outbreak is detected, significantly reducing the number of egg-laying hens.
“When a laying flock contracts the virus, the entire flock either dies or is euthanized to control the spread of the highly contagious disease,” said Kevin Bergquist, an agricultural expert at Wells Fargo, in an interview with Yahoo Finance.
Many commercial egg farms are concentrated operations, housing over a million birds at a single site. This means that a single outbreak can wipe out an entire production facility, putting immense pressure on the supply chain.
Are Egg Prices Going to Come Down Soon?
While the outlook remains uncertain, there are signs that some price relief may be on the way. Experts note that egg inventories have increased by 5.2% in recent weeks as consumers reduce purchases due to sticker shock, leaving more eggs available on store shelves.
According to Texas A&M University professor David Anderson, egg prices may soon begin to stabilize:
“The CPI (Consumer Price Index) is sort of backward-looking. Right now, prices are declining as shoppers with sticker shock buy fewer eggs at the store, increasing the available supply.”
However, long-term recovery will take time, and several factors could prevent a significant price drop in the near future:
- Rebuilding Poultry Flocks Takes Months
- Farmers can’t immediately replace lost hens. A typical egg-laying hen takes months to mature, and facilities must be sterilized and repopulated before production resumes.
- “A company can’t order a new flock of a million hens and get that overnight,” Bergquist explained.
- Potential for More Bird Flu Outbreaks
- Bird flu outbreaks tend to peak in late winter and early spring, meaning the crisis could worsen before improving.
- Any additional outbreaks could restart the cycle of flock losses, supply disruptions, and rising prices.
- Ongoing Inflationary Pressures
- Higher feed and transportation costs continue to impact poultry farms, keeping overall egg production costs elevated.
- Rising wages and labor shortages have also added more pressure on food producers.
Grocery Stores and Consumers React to High Egg Prices
As egg prices continue to rise, grocery stores and retailers are implementing measures to manage demand:
- Trader Joe’s and other retailers have limited egg purchases per customer, restricting buyers to one dozen eggs per visit in some locations.
- Consumers are shifting their shopping habits, looking for alternative protein sources like plant-based substitutes and bulk purchases of non-perishable food items.
- Restaurants and bakeries are adjusting menus, reducing reliance on eggs or increasing menu prices to compensate for higher costs.
Government Response: New Plan to Combat Bird Flu and Reduce Prices
The U.S. government is also stepping in to address the growing crisis. In late February, Agriculture Secretary Brooke Rollins announced a five-part strategy to combat avian flu outbreaks, backed by a $1 billion federal initiative. The plan includes:
- Stronger Biosecurity Measures – Ensuring farms have better protocols to prevent outbreaks.
- Improved Surveillance and Early Detection – Expanding testing to detect and contain the virus faster.
- Faster Response to Outbreaks – Increasing resources to handle infected flocks more efficiently.
- Support for Farmers – Providing financial aid to poultry producers affected by the crisis.
- Expanding Domestic Egg Production – Investing in more resilient supply chains to prevent future shortages.
While these measures aim to stabilize the egg market, it will take several months for their full impact to be felt.
Final Thoughts: What’s Next for Egg Prices?
The combination of bird flu outbreaks, supply chain issues, and inflationary pressures has created a perfect storm for rising egg prices. While some short-term relief may be on the horizon, a full recovery in supply and pricing will take time.
Consumers should expect continued volatility in egg prices, particularly as the industry works to replenish lost flocks and prevent further outbreaks. Meanwhile, government efforts and changing consumer behaviors may help bring gradual price stabilization later in 2025.
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