Wholesale egg prices in the United States are breaking records just before the arrival of Christmas. As people rush to buy eggs for baking pastries and various holiday delicacies, avian influenza among egg-laying hens is spreading rapidly, leading to a decrease in supply.
The high egg prices are adding insult to injury for consumers who are already facing stubborn inflation. Moreover, egg prices next year are expected to further rise.
According to a report by Expana, a commodity data company, wholesale prices for large eggs in the Midwest reached $5.57 per dozen on Wednesday, December 18, a 150% increase from last year and surpassing the previous record of $5.46 set in December 2022.
In California, prices are even more unbearable as local supply is further restricted due to regulations prohibiting farmers from raising hens in cages. Expana reported that egg prices there hit a staggering $8.85 per dozen.
Retailers have not immediately passed on the higher costs to consumers, in part because they do not want to scare away customers during the busy holiday season. However, Karyn Rispoli, editor-in-chief of the egg department at Expana, indicated that they may raise prices in the new year.
Erik Weenink, pricing director at Giant under Ahold Delhaize, stated that the U.S. supermarket chain has already canceled promotional events scheduled for January in Washington, DC, and Baltimore. “We really cannot predict at what levels costs will be,” he said.
The main factor driving the increase in egg prices is the damage caused to egg-laying hens by avian influenza. Since the outbreak of the epidemic in 2022, the virus has resulted in the deaths of nearly 123 million chickens, turkeys, and other poultry in 49 states.
According to data from the U.S. Department of Agriculture, as of October, the number of egg-laying hens in the United States has decreased by 3% compared to last year, to about 315 million, with egg production down by 4%.
According to the Bureau of Labor Statistics, the average retail price of eggs in November exceeded $3.60 per dozen, higher than the $2.50 at the beginning of the year. In September alone, the average price rose to $3.80.
Data shows that out of the 35 million commercial egg-laying hens culled this year due to avian influenza, nearly half were infected with the virus in the past three months.
In Iowa, the largest egg-producing state in the U.S., workers have begun culling 4.2 million hens that tested positive this month.
“We are in the midst of a pandemic.” Rispoli said.
The U.S. Department of Agriculture lowered its egg production and export forecast for 2025 this month while raising price expectations.
Greg Tyler, CEO of the USA Poultry & Egg Export Council, stated, “The export market is undersupplied, just like the U.S. market.”