Easter is not until April, but hunting is for eggs.
The catastrophic outbreak of avian flu has made breakfast and baking staples more expensive and hard to find as chicken populations and market forces increase grocery prices.
According to the U.S. Bureau of Labor Statistics, the average price in January almost doubled from last year, with a record high of $4.95 in January. Prices are even heavier in some locations. Or if you want a jumbo, organic, or free-range variety that has a price of $6 or $9 per dozen.
The spikes have contributed to an overall rise in grocery prices, up half the rate last month, according to a Labor Department’s Consumer Price Index report released this week.
Some grocery chains, including Trader Joe and Kroger, have set limits on the amount of eggs shoppers can buy to address the shortage.
Why are egg prices so high?
The main factor behind the egg price jump was the avian flu outbreak, which caused the deaths of more than 21 million chickens, including 13 million in December alone.
According to the US Department of Agriculture, the population of traditionally caged chickens has fallen by 8%. Eight states, including California, have confirmed outbreaks of avian flu.
“This virus is historically unprecedented,” said Sanjei Sharma, adjunct professor of finance and business economics at USC’s Marshall School of Business. “The reason for the lack of eggs is very clear. The birds are taking this flu and must be culled as soon as possible.”
In many cases, the entire flock must be killed to prevent spread of disease.
What’s the situation in California?
Prices rise as eggs become scarce and suppliers struggle to keep up with demand. The cost of a dozen eggs has risen 15% over the past four weeks, with prices increasing on the West Coast.
Prices for California eggs are particularly high. Because the state is primarily dependent on egg production, and is declining due to the outbreak of influenza. 40% of the eggs consumed in California are produced in the state, Sharma said.
“Everyone likes fresh eggs, so we usually eat the eggs we produce,” he said. “Now, it presents a problem.”
How long does rarity last?
Retailwire CEO Dominick Miserandino said that if chicken populations are replenished and eggs are produced at normal speeds, egg prices could return to normal. How long it takes depends on the disease and the progression of the peasant’s surgery.
“Now there’s no end I can see,” Miserandino said. “There’s been some degree of market panic and overreaction, which makes things worse.”
If grocery stores limit the amount of eggs shoppers can buy, some consumers expect the worst and try to buy in bulk, Miserandino is even more nervous about the market, says Miserandino I said that. He compared the potential scenario to high demand for toilet paper during the Covid-19 pandemic, leading to empty shelves.
Sharma said it can take months to raise a new flock of chickens and the bird flu could spread among them. “If the next pack is also infected, you need a real, systematic solution,” he said. “I don’t think it’s there.”
Is there anything you can do to save money?
There’s no need to store eggs, experts said. Most grocery stores that have an egg restriction limit their shoppers to two dozen per trip.
“Every time there’s a shortage, people start hoarding,” Sharma said. “It’s a human instinct, but it’s a self-defeating cycle. If people don’t hoard it, it’s definitely good for everyone.”
Sharma said he heard of a shopper buying as many as 500 eggs from Costco on a single trip. He suspects they are reselling them to restaurants and bakeries at lower prices than other suppliers.
“The price of eggs is the highest ever, and people are very nervous,” Miserandino said. “The simple advice is not to panic and not to investigate.”
What about other groceries?
Labor Bureau data shows that several grocery items have become more expensive since last year, including beef, milk and fresh chicken. Price production could skyrocket if President Trump successfully implements sudden tariffs in Mexico, Canada and China.
Trump campaigned on a promise to lower grocery prices after frequently denounced President Biden for inflation and high daily costs.
