Consumers are once again facing sticker shock in the egg aisle as prices for this kitchen staple continue to climb. The latest data from the Bureau of Labor Statistics reveals that egg prices have soared by 28.1 percent compared to last year, marking the most significant increase among all food products tracked.
Factors Behind the Price Hike
The primary culprit behind this dramatic price increase is a familiar foe: avian influenza, commonly known as bird flu. Since February 2022, over 111 million birds have been culled due to the virus, significantly impacting the egg-laying hen population. Recent outbreaks, including a substantial one at two chicken farms in Colorado in July, have further strained supplies. Adding to the pressure is the seasonal spike in demand. The egg industry experiences peak demand during November and December due to holiday baking, as Emily Metz, president and CEO of the American Egg Board, notes, “You can’t have your holiday baking, your pumpkin pie, or your stuffing without eggs.”
Price Trends and Consumer Impact
As of October 2024, the average cost for a dozen eggs in U.S. cities reached $3.37, according to the Bureau of Labor Statistics. While this represents a slight decrease from September and a significant drop from the record high of $4.82 in January 2023, it still marks a 63 percent increase compared to October 2022. The impact on consumers varies by region. Some states have experienced even steeper price increases, with Hawaii (+49%), Minnesota (+44%), and Alabama (+38%) seeing the most significant hikes over the past year.
Industry Response and Future Outlook
The egg industry is working to replenish its flocks, but this process can also constrain supplies as farmers need to reserve some eggs for hatching new chickens. Additionally, new regulations requiring cage-free eggs in several states have disrupted supply chains and increased production costs.While the situation remains volatile, there are signs of potential relief. The American Egg Board reports that recent wholesale egg prices have declined by 30 percent in recent weeks, which typically indicates that retail prices may also fall in the near future.As consumers and businesses grapple with these elevated prices, many are hoping for stabilization in the coming months. However, with ongoing challenges in the poultry industry and shifting consumer preferences, the days of budget-friendly eggs may be a thing of the past.
