In a recent interview, we explored the significant factors driving the rise in egg prices in the U.S., which have surged by 28.1% over the past year, with large eggs averaging $3.20 per dozen. According to the Bureau of Labor Statistics, one of the main contributors to this increase is the impact of avian influenza, commonly known as bird flu.
Phil Lempert, a food industry analyst, pointed out in a report by The Hill that the skyrocketing prices are closely tied to a high demand for eggs, compounded by the effects of the bird flu outbreak. “Consider the way these chickens are raised: they’re kept in cramped spaces with a large number of birds. When one gets infected with avian influenza, the entire flock must be culled. That’s the crux of the problem,” he stated.
The epidemic has greatly affected the overall production of eggs, which has, in turn, led to pricing hikes. Amy Hagerman, an associate professor of agricultural economics at Oklahoma State University, emphasized that the large-scale facilities for egg-laying hens make them particularly vulnerable. “In one facility, losses can amount to one or two million chickens due to the highly contagious nature of the virus,” she noted.
Data from the Centers for Disease Control and Prevention (CDC) indicates that previous outbreaks of highly pathogenic avian influenza (HPAI), which occurred in 2014 and 2022, resulted in the deaths of over 50 million birds in 2014 alone. Since January 2022, the virus has affected more than 100 million birds across 48 states, including wild waterfowl and both commercial and backyard poultry.
For instance, in July of this year, an outbreak at a poultry farm in northeastern Colorado led to five workers testing positive after culling infected chickens. The data indicates that the largest infected flock in Colorado had over 1.79 million egg-laying hens. Nationwide, the largest known outbreak this year occurred in late May in Sioux County, Iowa, involving nearly 4.29 million chickens.
However, avian influenza isn’t the sole culprit behind rising egg prices. Emily Metz, chair of the American Egg Board, added that inflationary pressures are also a significant factor, citing increased fuel prices, labor costs, and packaging expenses. “Egg farmers are price takers rather than price makers; price fluctuations reflect many factors beyond their control,” she explained, noting that demand for eggs has been rising continuously for 18 months, even during the typically slower-demand summer months.
Recently, egg prices have surged again, largely due to changing consumer shopping habits. CoBank economist Brian Earnest pointed out that demand tends to spike in the fall and winter, driven by increased baking during the holiday season and students returning to school dining halls where eggs are a staple.
Additionally, Earnest remarked that the population of laying hens is still relatively low due to the lingering effects of the past two years of avian influenza, stating, “It seems they just can’t shake off the bird flu issue.”