Egg Prices Soar: Avian Flu Fuels Supply Shortages and Record Costs

Egg prices in the U.S. have seen a staggering increase, with costs rising over 15% in January alone compared to the same period last year. This steep surge stands in stark contrast to the overall U.S. inflation rate of just 3%. According to Consumer Price Index data, this relentless upward trend in egg prices has left shoppers grappling with the impact at both grocery stores and dining establishments.

The Severity of the Price Hike

To put this into perspective, the price of a dozen eggs has skyrocketed from an average of $1.54 in 2019 to a staggering $4.15 last year, representing a jaw-dropping 170% increase, as reported by CBS News' price tracker of everyday goods.

This unprecedented surge in egg prices can be largely attributed to the devastating impact of avian flu, which has resulted in the untimely demise of over 40 million egg-laying birds nationwide. Furthermore, when including ducks and chickens, an alarming total of 148 million birds have been mandated for euthanasia since the emergence of the current strain of bird flu, H5N1, that began spreading across the U.S. in 2022.

Future Expectations and Consumer Impact

While the relentless surge in prices is concerning, the good news is that the rate of increase in egg prices is expected to slow down over the course of the year. EY Chief Economist Gregory Daco opines that the January surge is likely an isolated incident. However, this may provide little solace to the millions of consumers who are still grappling with record-high egg prices, leading to elevated costs for both home-cooked meals and dine-in experiences at restaurants.

Understanding the Price Spike

The primary driver behind the exorbitant price spike in eggs is the continued prevalence of bird flu, which has wreaked havoc on farms and wiped out entire flocks. This grim scenario has disrupted the supply chain to such an extent that demand for eggs, a staple with limited substitutes, remains steady while supply dwindles, resulting in soaring prices.

Sharon Linsenbardt, the founder and owner of Barn Buddies Rescue and Sanctuary in Las Vegas, aptly summarized the situation by stating, "If you don't have a bird you don't have an egg." The irreplaceable loss of millions of egg-laying hens due to avian influenza has significantly curtailed the supply of eggs in the market, leading to a concrete surge in prices. Additionally, Columbia Business School professor Yiming Ma reiterated that the limited supply drives up prices, emphasizing the direct impact of the avian flu issue on egg availability for sale.