In recent months, consumer egg prices have reached record highs, despite the waning of bird flu outbreaks that had previously limited the egg supply. The average cost of large, grade A eggs surged to $6.23 per dozen in March, marking a 5.9% increase from the previous month and a significant 60% jump from the same period last year, as reported by the Bureau of Labor Statistics’ Consumer Price Index.
The egg supply is gradually recovering as farms report fewer instances of avian influenza outbreaks. The bird flu had severely impacted commercial operations towards the end of 2024, leading to substantial shortages in the egg supply chain.
However, there is hope on the horizon as wholesale egg prices in key markets such as New York, California, and the Midwest have started to decline as of April 4, according to a USDA report. Stocks of conventional and cage-free eggs have seen an uptick, although the supply of organic shell eggs experienced a slight dip.
While wholesale prices are on a downward trend, it may take some time for these cost savings to be passed on to consumers. Grocers are beginning to offer discounts as they regain confidence in the improved egg supply situation. Consumer demand has also played a role in shaping pricing strategies, with muted demand prompting retailers to adjust their pricing strategies accordingly.
Farms have been working diligently to rebuild the egg supply following the devastating avian influenza outbreaks that led to the culling of more than 30 million birds since the beginning of the year. The number of detections on farms has decreased, with only one commercial operation reporting an outbreak in April, compared to 12 outbreaks in the previous month and 85 in January. The summer months typically see a decrease in bird flu detections due to the limiting effect of heat on the virus’s viability.
Despite the progress made in rebuilding the egg supply, chicken flocks remain thin, with a 12.5% decrease in the caged flock as of March 1 compared to the beginning of the year. The shortage in egg supply has raised concerns among lawmakers, with some accusing producers of artificially inflating prices to maximize profits. Leading egg supplier Cal-Maine has confirmed its cooperation with a Department of Justice investigation into the factors contributing to the surge in consumer egg prices.
Overall, the egg industry is navigating through a period of recovery and stabilization following the challenges posed by bird flu outbreaks. With supply gradually improving and prices showing signs of moderation, consumers can expect to see some relief in the coming months as the industry continues to adapt and respond to changing market dynamics.