The recent surge in consumer egg prices has reached record levels, despite the fading of bird flu outbreaks that had previously limited supply. According to the Bureau of Labor Statistics’ Consumer Price Index, the average cost of large, grade A eggs in March was $6.23 per dozen. This marks a significant 5.9% increase from the previous month and a staggering 60% jump compared to the same time last year.
The egg supply is slowly recovering as farms report fewer instances of avian influenza outbreaks. The devastating impact of bird flu on commercial operations in late 2024 led to significant shortages, but the situation is gradually improving.
Despite the continuous rise in consumer egg prices, there are signs of relief on the horizon as wholesale costs begin to decrease. Wholesale egg prices in key markets like New York, California, and the Midwest have started to decline, as reported by the USDA. Stocks of conventional and cage-free eggs have increased, although the supply of organic shell eggs has slightly decreased.
While wholesale prices are dropping, it may take some time for these savings to be passed on to consumers. Grocers are beginning to offer discounts as they become more confident in the improved egg supply. The USDA noted that consumers are now seeing fully stocked shelves and a wider range of egg choices without purchase restrictions.
Farms have been able to rebuild the egg supply after the devastating avian influenza outbreaks earlier this year. The number of detections on farms has decreased, with only one commercial operation reporting an outbreak in April so far. This is a significant improvement compared to the 85 outbreaks reported in January.
Although producers have made progress in rebuilding the egg supply, chicken flocks remain thin. The caged flock was down by 12.5% as of March 1 compared to the beginning of the year.
The surge in egg prices has led to accusations from some in Congress that producers are intentionally hiking prices to maximize profits. Cal-Maine, the largest egg supplier in the U.S., is currently cooperating with a Department of Justice investigation into the factors behind the increased consumer prices for eggs.
Overall, while consumer egg prices have reached record highs, there are positive signs of recovery in the egg market as supply improves and wholesale costs decrease. Consumers can hopefully expect some relief in the coming months as grocers begin to pass on these savings.
