It used to be the case that if you wanted an inexpensive source of protein, you’d head to the grocery store and grab a dozen eggs. That’s no longer the case.
Data from the USDA’s Agricultural Marketing Service (AMS) found that over the last year, the average price for a dozen eggs went up 63%. By some metrics, that percentage is even higher; the national average price was $5.90 in February, based on data from the Bureau of Labor Statistics (BLS). That’s up from $3.00 from the previous February and from $1.45 in 2020.
So what exactly is causing this surge, and what can you do about it?
The short answer is there are shortages in supply due to an avian flu outbreak. The longer answer is a bit more complicated.
More specifically, the most recent outbreak from Highly Pathogenic Avian Influenza has caused the deaths of around 150 million chickens and turkeys — a large percentage of them egg-laying hens. Farmers have been battling this outbreak since 2022 and have been working hard to repopulate chickens to meet the demands for eggs.
Because even young egg-laying hens have been affected, this repopulation is expected to take at least six months to a year.
Emily Metz, chief executive of the American Egg Board, told Wall Street Journal that farmers “know people are frustrated and they are frustrated too by the situation,” and that “they know they are not able to put on the volume of eggs that people want.”
As the decreased supply of eggs hasn’t tempered demand, prices have gone up as a result. Stores are trying to maintain a steady supply of eggs and not risk having them sell out.
But the Department of Justice (DOJ) is also considering other reasons why prices are so high and has launched an investigation into the cause of the steep rise in cost of eggs. Its antitrust probe is also looking at whether the ongoing shortage is the result of collusion between producers and distributors to drive up profits.
Typically, grocery stores tend to keep the price of eggs relatively low, partially as a strategy to attract customers through the doors. In other words, grocery stores only put a small markup from wholesale egg prices, knowing that consumers will likely buy other items with higher profit margins while in the store to purchase their eggs (a strategy Costco employs as well).