Egg Prices Reach New Heights: What’s Behind the Surge?
The cost of eggs has skyrocketed in recent months, leaving many shoppers stunned as a dozen eggs rings up at over $9 at some retailers. But what’s driving this dramatic price hike?
Regional Variations
According to the U.S. Department of Agriculture, wholesale eggs averaged $4.62 per dozen in December 2024. However, prices vary significantly by region due to transportation costs, local demand, and market competition. For instance, the average cost of eggs in California is a whopping $8.04, while in New York, it’s $6.25 as of January 10.
The Avian Flu Factor
The primary culprit behind the soaring egg prices is the ongoing avian flu outbreak, which began in early 2022 and has led to the culling of millions of egg-laying hens. With demand remaining steady, the reduced supply has caused prices to rise. This marks the second time egg prices have surged since 2022, following a previous wave of avian flu that wiped out large numbers of egg-laying hens and caused supply shortages.
The Devastating Impact of Avian Flu
Avian flu has had a devastating impact on the poultry industry, wiping out over 100 million chickens since the major outbreak began in early 2022. As a result, supply is still struggling to recover, and cases continue to emerge. Unfortunately, this means grocery store egg prices show no signs of easing anytime soon.
A Glimmer of Hope
While the U.S. Department of Agriculture doesn’t forecast national wholesale prices, the New York wholesale average per dozen is considered the industry standard. According to the USDA, New York’s average price is expected to remain high at $4.80 in the early part of the year but will eventually drop to $2.35 per dozen by the end of 2025. Although prices are expected to ease from late 2024 highs, they will likely stay above pre-outbreak levels through 2025.
The Future of Egg Prices
However, further outbreaks or supply disruptions could push prices higher again, as egg prices tend to change quickly in response to market conditions. As the poultry industry continues to navigate the challenges posed by avian flu, one thing is certain – egg prices will remain volatile in the coming months.
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