U.S. egg prices have reached a new high of $6.23 per dozen, despite a decrease in wholesale costs and a slowdown in bird flu outbreaks. This increase, reported in the latest Consumer Price Index, suggests that consumers and businesses relying on eggs may not see immediate relief. Typically, demand for eggs remains elevated until after Easter, which this year falls on April 20.
Industry experts had anticipated a drop in retail egg prices due to the significant decrease in wholesale prices in March. However, Jada Thompson, an agricultural economist at the University of Arkansas, noted that wholesale prices only began to decline in mid-March. This timing may not have allowed enough time for the average monthly price to reflect the decrease, and grocery stores might not have immediately passed on the lower prices to consumers.
Impact of Bird Flu on Egg Prices
Bird flu outbreaks were a major factor in the price spikes seen in January and February, as over 30 million egg-laying chickens were culled to prevent the disease’s spread. In March, only 2.1 million birds were slaughtered, and none were from egg farms. Farms affected by fall outbreaks are working to resume production, but it takes time for new flocks to mature and start laying eggs. As of March 1, the U.S. Department of Agriculture reported about 285 million hens laying eggs nationwide, down from 293 million the previous month.
President Donald Trump attempted to take credit for the recent drop in wholesale egg prices. However, experts believe that his focus on strengthening defenses against bird flu will likely provide more long-term benefits. “I think there are lots of people who are looking to see the egg prices coming down because they wanted to call it a win. And I think it’s a loss for everybody. I think we all want to see egg prices come down,” Thompson said.
Regional Variations in Egg Prices
Egg prices began to decrease in mid-March, according to Datasembly, a market research company tracking prices at thousands of stores. Prices averaged $5.98 per dozen the week of March 16 and dropped to $5.51 the week of March 30. However, prices vary widely across the country, influenced by recent bird flu outbreaks and state laws requiring cage-free eggs.
For example, in San Francisco, cage-free eggs were priced at $9.99 per dozen, while in Denver, the same eggs cost $6.69 per dozen. In Washington D.C., where cage-free eggs are not mandated, a dozen eggs were $5.29. Meanwhile, in Omaha, Nebraska, Walmart offered eggs for $4.97 per dozen.
Scrutiny on Egg Producers
Despite expectations for further price declines this spring, the current situation has increased scrutiny on major egg producers like Cal-Maine Foods, which supplies 20% of the nation’s eggs. The U.S. Department of Justice’s antitrust division is investigating Cal-Maine for potential price increases. In its most recent quarter, Cal-Maine reported a net income of $508.5 million, more than triple the previous year, with revenue nearly doubling to $1.42 billion, largely due to higher egg prices.
Since the bird flu outbreak began, over 168 million birds have been culled, most of them egg-laying chickens. The disease spreads easily through the droppings of wild birds carrying the avian flu virus, making it difficult to control. Bird flu has also affected other animals, including dairy cattle.
Egg prices reached $5.90 in February, following a record $4.95 per dozen in January. Prices have fluctuated, with some areas experiencing costs as high as $12 per dozen. Earlier in the outbreak, prices spiked to $4.82 in January 2023 before falling to as low as $2.04 per dozen in August 2023. Since then, prices have generally increased steadily.
