Egg prices, already on the rise over the past two years, are experiencing a significant spike driven by a combination of avian flu outbreaks and heightened holiday demand, CNN reports.
The holiday season, a peak period for baking and cooking, is compounding the price pressures caused by ongoing supply challenges.
According to the Consumer Price Index, grocery store egg prices in October rose by 30.4% compared to the previous year. Emily Metz, President and CEO of the American Egg Board, noted the seasonal impact:
“The holidays are always the highest retail sales season of the year because if you think about your holidays, your baking, your cooking, you’re entertaining, all of those require extra eggs.”
Grocers have reported a steady increase in wholesale prices. The USDA recorded the average cost of a dozen large white eggs in the New York wholesale market at $4.23 as of November 15, up from $2.43 a year earlier—a 54% jump.
Avian flu, which has disrupted the egg supply chain since early 2022, has reduced the nation’s egg-laying bird population by 8%. More than 108 million birds have been affected, 75 million of which were egg layers.
A resurgence of avian flu last month has exacerbated the problem, with 2.8 million egg-laying birds lost in Oregon, Utah, and Washington. The USDA estimates this recent outbreak could result in a loss of approximately 60 million eggs, further straining the market.
“Our egg prices really ride the waves associated with high influenza,” said Bernt Nelson, an economist with the American Farm Bureau Federation.
For grocery chains, the rising costs present challenges in balancing profitability with affordability. Some, like Stew Leonard’s, are opting to absorb some of the price hikes.
“I can’t go over $4.99 [per dozen] on the eggs right now, even though our farmer may say he’s raising the price 10 cents,” said Stew Leonard Jr., CEO of the northeast-based grocery chain.
Other retailers have noticed that rising costs are pushing commodity egg prices closer to the price of organic or specialty eggs, which could shift consumer buying patterns and create additional pressure on premium egg supplies.
The ripple effects of higher egg prices are likely to extend beyond cartons of eggs. Products that rely on eggs, such as pasta and mayonnaise, could see price increases in the near future.
“If eggs stay high, you get that ripple effect,” explained Steve Schwartz, director of sales and marketing at Morton Williams, a New York City grocery chain.
With supply revisions by the USDA projecting continued constraints into early 2025, egg prices are expected to remain elevated, further challenging consumers and retailers alike.
