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By Monica Sager and Kate Nalepinski
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A weekly report from the Agricultural Marketing Service highlights the impact of ongoing bird flu outbreaks by showing the losses of chickens that lay eggs due to bird flu in certain states.
The report from the Agricultural Marketing Service, which operates under the U.S. Department of Agriculture (USDA), documents losses of egg-laying breeds across eight states: Arizona, California, North Carolina, Ohio, Pennsylvania, Missouri, Indiana and Washington.
Why Is There an Egg Shortage?
The availability of eggs has decreased across the U.S. due to a combination of supply chain disruptions, an ongoing bird flu outbreak and new state regulations requiring cage-free egg production.
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The largest losses in chickens have occurred in conventional chicken caging systems, which account for 71 percent of affected flocks. Cage-free and organic flocks have also been impacted, exacerbating shortages across all market segments.
California, Michigan and Colorado are seeing significant egg shortages, mainly due to bird flu outbreaks, Patrick Penfield, professor at Syracuse University Whitman School of Management, told Newsweek.
"I would not be shocked to see eggs go up to $7.00 a dozen in certain states and $12.00 a dozen in cage-free states," Penfield said.
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Retailers have responded nationally, some by implementing purchasing limits, reducing promotional activity and maintaining high prices to balance supply with demand.
The supply of eggs in U.S. is thought to be elastic, Dr. Ricky Volpe, of the Agribusiness Department at California Polytechnic State University, told Newsweek. It typically responds quickly to market forces. But continuous outbreaks make it difficult to predict when the egg supply will return to normal.
"We can hope for egg prices to flatten, but honestly I don't think that egg prices coming down this year is realistic," he said.
Shoppers should be mindful of local outbreaks, too, Penfield said, as they will impact prices, especially this Easter. If you see an outbreak in your area, egg prices will go up in less than a week.
What Is the Bird Flu?
Highly pathogenic avian influenza, or bird flu, is a virus that affects birds, particularly poultry, leading to severe illness and high mortality rates. To prevent its spread, infected flocks must be culled.
The USDA has confirmed 23 outbreaks across multiple states, severely affecting the supply chain and contributing to higher egg prices.
Bird flu primarily impacts commercial egg-laying operations, but backyard and organic farms have also reported cases. The virus is transmitted through wild birds, contaminated equipment and farm-to-farm interactions.
While the risk to humans remains low, the economic consequences for the poultry industry are substantial.
Why Are Eggs So Expensive Right Now?
The combination of bird flu-related culling, increased consumer demand and supply chain disruptions has driven egg prices to record highs.
According to the USDA, national trading prices for large, loose, white shell eggs reached $7.34 per dozen, an increase of $0.64.
With more culling, there are less hens available to lay eggs, which can lead to increased costs for production and distribution.
Where Are Egg Prices Lowest?
Egg prices vary significantly by region. The Midwest saw an 8 percent increase in large shell egg stocks, though it is unclear if supply in that area is recovering faster. In contrast, eastern U.S. markets continue to experience shortages, leading to higher prices and tighter supply constraints.
For now, Americans can expect continued high prices, limited availability and ongoing market adjustments as the industry works to recover from one of the worst avian flu outbreaks in history.
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