Egg prices are at record levels, with some restaurants raising menu prices to keep up with the cost of eggs. The combination of inflation and highly pathogenic avian influenza (HPAI) has caused egg prices to rise more than 350% per dozen compared to this time last year. To understand the causes behind these record-high prices, we’ll evaluate two major factors: HPAI’s impact on the poultry industry and inflation.
The loss of egg-laying chickens from HPAI is the main driver of the price increase. Since 2022, over 166 million birds have been affected, resulting in reduced egg supplies and higher prices. The US Department of Agriculture’s Economic Research Service reports that the monthly national average price for large Grade A eggs in January was a record-high $4.95 per dozen.
Unlike other products with good substitutes, eggs are an inelastic good, meaning consumers still buy the same amount even when prices change. This relatively unchanging demand for eggs makes supply factors a significant impact on egg prices. The US has seen remarkable resilience in keeping eggs on grocery store shelves despite the challenges posed by HPAI.
The primary control and eradication strategy for HPAI in domestic poultry is de-population, which is considered humane and effective. However, this approach can cause significant economic loss to farmers due to the time it takes to clean and raise new chicks to egg-laying age. The death of an entire flock from avian influenza is also traumatic for farm families.
Inflation is another factor contributing to record-high egg prices. While inflation has slowed in recent years, it’s essential to remember that slower growth doesn’t mean prices are decreasing; it means they’re becoming more expensive over time. According to the Bureau of Labor and Statistics, the unadjusted Consumer Price Index (CPI) for eggs rose 53% from January 2024 to January 2025.
Farm production expenses, including labor wages, interest, and fuel, remain historically high following price spikes in 2022 and 2023. The price of chicks is also elevated due to HPAI, making being an egg farmer a risky business. Despite record-high prices, farmers are not getting rich, as expenses continue to outweigh revenue.
Source: https://www.fb.org/market-intel/egg-prices-continue-setting-records