US Egg Prices Soar to Record $4.95—Will They Keep Going Up?

The price of eggs has reached a new record as the U.S. battles an ongoing bird flu outbreak. But consumers don’t have to wait for government figures to know that eggs can be expensive and difficult to come by.

The latest monthly consumer prices index revealed that the average price for a dozen Grade A Eggs in U.S. Cities reached $4.95, surpassing the previous record price of $4.82 that was set two years ago and exceeding the low price of $2.04 recorded in August 2023.

According to the U.S. Bureau of Labor Statistics, the spike in egg costs was the largest since the last bird flu outbreak in 2015. It accounted for about two-thirds of all the increase in food prices last month.

This is the average price for all of Canada. In some places, a carton of eggs may cost as much as $10. Specialized varieties such as organic or cage-free eggs are even more costly.

We use eggs less frequently now. Jon Florey surveyed the options at Encinal Market, Alameda in California, and said, “You know, it’s because of the cost. I wanted to make my favorite quiche, but it takes about six eggs. So I decided to do something else.”

There is no immediate relief in sight. The Easter holiday is a time when egg prices are usually higher due to the high demand. The U.S. Department of Agriculture forecast last month that the price of eggs would likely increase by 20% this year.

It is possible that even if consumers can afford to buy eggs, they will have trouble finding them. Customers are being charged surcharges or have limits placed on the number of cartons that they can purchase at one time.

Encinal Market’s owner Joe Trimble says he struggles to get all the eggs from his suppliers. His shelves are usually only 25% full.

Trimble explained, “You don’t even think about it until the shelf is nearly empty. The same as milk, eggs are expected to be available. The egg is a must-have in any grocery store because shoppers don’t look for other foods on Saturday mornings. It’s what they want. They want some scrambled or over-easy egg on a weekend morning.”

The bird flu outbreak is the main reason why eggs are now more expensive. To limit the spread, when the virus is discovered on a farm the entire flock will be killed. A single outbreak can have a significant impact on the egg supply because massive egg farms often contain millions of birds. Since the outbreak began, nearly 158 million chickens have been killed.

According to the Agriculture Department, more than 23 million birds were killed last month and over 18 million in December. This was done to reduce the spread of bird flu. These numbers include both turkeys and poultry raised for meat. However, the majority were egg-laying hens.

When there is an outbreak, it can take several months to remove the carcasses from the farm, clean the barns, and raise the new birds to the age where they can start producing eggs. So the effects are long-lasting.

The virus is spread by wild birds, which migrate in spring and fall. However, cases can occur at any time. The virus has spread to cattle, other species, and people. Most of the sick people are farmworkers who take care of sick animals.

Health officials maintain that the risk to human health is low and that eggs and poultry can be eaten without concern because sick animals cannot enter the food supply. In addition, cooking eggs and meat to 165 degrees Fahrenheit or higher kills all viruses, while pasteurization of milk neutralizes the bird flu virus.

Inflation has also led to higher costs for feed, fuel, and labor for egg farmers. Farmers are also investing in biosecurity measures as a way to protect their birds.

Ten states have passed legislation allowing only cage-free eggs to be sold. As the supply of these eggs is more concentrated in some regions, it can have a greater impact on price when an outbreak occurs.

California is home to many cage-free egg farms. California, Massachusetts Nevada, Washington, Oregon Colorado, and Michigan have all passed laws requiring cage-free eggs.

The total demand for eggs has also increased significantly over the past few years. The demand for eggs is increasing as consumers buy more. All-day breakfast restaurants are also contributing to the increase.

CoBank analyst Brian Earnest stated that the current price of eggs may discourage some buyers, which could ease demand pressure. However, this effect might not be noticeable. Egg producers will take several months to close the supply gaps.

Earnest stated, “As consumers continue to buy eggs in stores, the supply will be tight and Easter is just around the corner. This could prolong the shortage of supplies.”

He said that while prices are high, bakers and food producers who rely heavily on eggs will need to decide whether to raise prices or cut production.