Egg prices soar as bird flu and cage-free laws scramble the market, leaving consumers shell-shocked.
Quick Takes
- Egg prices could rise another 20% by year-end due to bird flu and cage-free legislation.
- The average price for a dozen Grade A large eggs jumped from $2.51 to $4.15 in December.
- Highly Pathogenic Avian Influenza (HPAI) has led to the culling of millions of egg-laying hens.
- State laws mandating cage-free production are increasing costs for producers.
- Consumers face higher prices and potential shortages, especially in states with cage-free laws.
Bird Flu Cracks the Egg Industry
The U.S. egg industry is facing unprecedented challenges as a perfect storm of factors threatens to push prices even higher. Highly Pathogenic Avian Influenza (HPAI) outbreak has devastated poultry flocks across the nation, forcing farmers to cull millions of egg-laying hens. This drastic reduction in supply, coupled with steady consumer demand, has led to a dramatic increase in egg prices.
According to data from the U.S. Bureau of Labor Statistics, the average cost of a dozen Grade A large eggs skyrocketed to $4.15 in December, up from $3.65 in November. This represents a staggering 37% increase in just one year, far outpacing the overall rise in food prices. The situation is dire, with no immediate relief in sight.
Cage-Free Laws Add to the Scramble
As if the bird flu outbreak wasn’t enough, new state laws mandating cage-free egg production are further complicating matters. In Michigan, for example, a recently enacted law banning non-cage-free eggs has led to rising prices and empty shelves in metro Detroit. The law, passed in 2009 with a 2019 implementation date, was delayed until December 31, 2024, but its effects are now being felt across the state.
“I know that there have been some sourcing issues resulting in less than fully stocked grocery shelves here today,” said Tim Boring, director of the state’s Department of Agriculture and Rural Development.
The impact of these laws is not limited to Michigan. Eight states have now implemented similar legislation, and many retailers have committed to selling only cage-free eggs. While well-intentioned, these measures are contributing to shortages and higher prices, particularly in states where such laws are in effect.
No Quick Fix in Sight
The egg industry faces a long road to recovery. Unlike other livestock, chickens require significant time to mature and begin producing eggs. Patrick Penfield, an expert in the field, notes, “Once a hen is five months old, it can lay about one egg per day.” This means that even if new chicks are hatched immediately, it will take months before egg production can increase significantly.
Patrick Penfield, a supply chain expert at Syracuse University’s School of Management, said, “Once a hen is five months old, it can lay about one egg per day.”
Compounding the problem is the lack of effective treatments for bird flu. There are currently no vaccines or medical interventions available, leaving farmers to rely solely on biosecurity measures to protect their flocks. This vulnerability is particularly pronounced in pasture-raised and cage-free systems, which are considered the “gold standard” but are at increased risk of HPAI exposure.
As consumers grapple with higher prices and potential shortages, the egg industry must navigate these challenges to ensure a stable supply of this dietary staple. With experts predicting that egg prices could rise another 20% by year-end, it’s clear that the road ahead will be anything but easy for producers and consumers alike.
Sources:
- https://www.axios.com/local/detroit/2025/01/15/michigan-new-cage-free-law-bird-flu-expensive-eggs
- https://www.nerdwallet.com/article/finance/why-are-eggs-so-expensive
- https://nypost.com/2025/01/19/business/egg-prices-may-rise-as-much-as-20-by-end-of-the-year-says-expert-heres-why/
- https://www.foxnews.com/food-drink/egg-prices-may-soon-rise-expert-why-how-much