Egg prices have been skyrocketing across the United States, and it looks like the trend isn’t going to end anytime soon. In fact, experts predict that egg prices could rise even further in 2025, leaving consumers with fewer options and higher grocery bills. This increase in prices is mainly due to a deadly strain of bird flu that continues to affect poultry flocks across the country. Let’s dive deeper into why eggs are getting so expensive and what we can expect in the near future.
A Growing Crisis at Supermarkets
Across many parts of the U.S., including Massachusetts and Las Vegas, customers are facing challenges when it comes to buying eggs. Some stores are even placing limits on how many cartons a family can purchase due to shortages. The situation has caused confusion and frustration among consumers. One shopper from Las Vegas shared on social media that they were shocked to see eggs priced at more than double what they used to pay. What once cost around $2 per dozen is now closer to $4, leaving many people feeling the pinch.
The Impact of Avian Flu
The main culprit behind these high egg prices is the ongoing outbreak of avian influenza (bird flu), specifically the H5N1 strain. This virus has been responsible for killing millions of commercial egg-laying hens across the country. According to the U.S. Department of Agriculture (USDA), in December 2024 alone, over 13 million hens were lost due to this flu, and the outbreaks are expected to continue into 2025.
The H5N1 virus has a high mortality rate among poultry, and its spread across the U.S. is having a devastating effect on the egg supply chain. As more flocks are affected, prices continue to climb.
What This Means for Consumers and Businesses
For diners, restaurants, and consumers, the impact of these price hikes is significant. Kip Green, the co-owner of Montague Diner in Brooklyn, New York, shared how important eggs are to their menu. With eggs being a key ingredient in various dishes like pancakes, French toast, and egg salads, the diner has to use hundreds of eggs a day. Despite the rising costs, Green emphasized that they are working with their suppliers and farmers to manage the situation and keep prices down for customers.
However, Green admitted that the price hikes are challenging. For many businesses, it’s about adjusting and finding ways to make things work without passing on the full cost to customers. In some cases, businesses may cut costs elsewhere, but it’s a tough balancing act.
The Rising Cost of Eggs
The prices of eggs have been on a steady rise over the past year. In December 2024, the average price of a dozen large, grade-A eggs was $4.15, which was a 14% increase from the previous month and a whopping 60% higher than a year ago. This price surge is significantly higher than the general rate of inflation for food, which was only 2.5% in December 2024.
The USDA has warned that this trend is likely to continue, with egg prices expected to increase by another 20% in 2025. But why are egg prices increasing so rapidly?
Key Factors Behind the Price Surge
There are a couple of reasons why egg prices are so high. First, the H5N1 bird flu strain continues to cause major disruptions in the supply chain. When an outbreak is detected, entire flocks of poultry must be culled to prevent further spread of the virus. This has caused shortages in the number of eggs available on the market.
Ricky Volpe, a professor of agribusiness at Cal Poly State University, explained that the situation is like a game of “whack-a-mole,” where one outbreak is dealt with, only for another to pop up somewhere else. This ongoing cycle of outbreaks means the supply of eggs continues to be unpredictable.
The second factor contributing to the rise in prices is the shortage of truck drivers in the U.S. Fewer drivers are available to transport eggs to retailers, and with rising shipping costs, wholesalers are forced to raise prices. Eggs require special transportation in refrigerated trucks, which adds to the cost.
Shortage of Eggs and Local Solutions
While some retailers may offer lower prices on eggs to attract customers, Volpe warned that these deals are often sold at a loss. The goal is to get customers into the store, where they might purchase other products at normal prices. So, while the price of eggs may seem lower at some stores, overall grocery costs could still be the same.
Volpe suggested that a potential solution to the egg shortage could be to source eggs locally. Local suppliers, who may not be as affected by the bird flu outbreaks or transportation issues, could provide more stable egg supplies. This would help alleviate some of the pressure caused by the larger, industrial egg farms.
What’s Being Done to Address the Problem?
The White House has been asked about the rising cost of eggs and what is being done to address the situation. Karoline Leavitt, the White House Press Secretary, responded by pointing out that the Biden administration and the Department of Agriculture had to take action in killing millions of chickens to manage the spread of avian flu. The situation is further complicated by the loss of egg-laying hens due to the virus.
Will Egg Prices Ever Drop?
Given the ongoing disruptions to the egg supply chain, it’s unclear when prices will stabilize. Experts have suggested that it may take time for egg supplies to recover, and in the meantime, consumers will likely continue to face higher prices. For now, it looks like egg prices will continue to climb, and finding affordable eggs may become even more difficult in 2025.
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