Egg prices have soared due to a combination of economic policies and a severe bird flu outbreak, creating a challenging situation for American consumers.
Key Takeaways
- Bird flu severely impacts egg supply, leading to soaring U.S. egg prices.
- Average price for a dozen eggs was $4.15 in December 2024, with further increases expected.
- White House blames Biden administration’s policies for inflation and egg shortages.
- Grocery stores restrict egg purchases amid supply shortages.
- Millions of birds culled to control bird flu have significantly affected supply.
Press Conference Insights
In her first press conference, White House press secretary Karoline Leavitt addressed the drastic rise in egg prices. She attributed the 65% inflation to the economic policies enacted by the Biden administration and the ongoing outbreak of Highly Pathogenic Avian Influenza (HPAI). This outbreak led to the culling of more than 20 million egg-laying hens, which resulted in a significant impact on the supply chain.
Amid these challenges, the U.S. Department of Agriculture and Earnest Analytics data highlight yearly increases in egg prices, warning of potential peaks. As egg prices are predicted to increase by another 20% this year, some retail outlets have begun limiting egg purchases to manage the shortage.
Economic and Policy Factors
Several factors contribute to the current egg price surge. Bird flu, spread by wild birds and transmitted to farm-raised poultry, remains a significant factor. The outbreak, active since 2022, has led to the nationwide slaughter of over 145 million birds, primarily egg-laying chickens. Factors also include regulations in 10 states mandating cage-free egg production, disrupting supply and contributing to price increases.
“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
Complicated by supply chain issues, many regions report egg prices have more than doubled. In some places, the cost of organic and cage-free eggs surpasses others. Faced with shortages, grocery stores implement limits on egg purchases to balance supply shortages, adding to consumer frustration.
Impacts and Predictions
While bird flu also affects other products like turkey and milk, the immediate attention remains on egg prices. The USDA’s efforts include over $1.14 billion spent compensating farmers for culled birds and additional assistance of $576 million. Despite summer temperatures, the virus did not recede, further impacting poultry and dairy cattle equally.
“According to Earnest Scanner Consumer Packaged Goods (CPG) product data, this marks the highest YoY price increase since mid-2023.” – Earnest Analytics
Farmers implement extensive biosecurity measures to mitigate HPAI. Truck washes, shower facilities, and duplicate tools are standard, with innovative solutions like lasers deterring wild birds from farms. Despite these measures, retailers continue struggling with supply and pricing issues, unable to maintain stocks, particularly regarding organic and cage-free eggs.
Sources
2. Egg prices are soaring. Don’t expect that to change anytime soon
