Egg prices across the United States have surged to their highest levels of the year, driven by widespread bird flu outbreaks and increased demand during the holiday season. National wholesale prices for large eggs reached USD 4.07 per dozen on Friday, which is dramatically up from USD 1.1 early this year, according to data from the U.S. Department of Agriculture (USDA).
The price surge, primarily influenced by highly pathogenic avian influenza's impact on commercial egg layer flocks, has hit coastal markets particularly hard, with states like California and New York experiencing the most significant increases. The poultry industry has faced devastating losses, with 36.8 million table egg layers lost across 12 states this year alone due to bird flu outbreaks and facility fires, the USDA noted.
The timing of these losses is alarming; with 38 percent of total losses occurring since November 1 and 28 percent throughout December, the figures coincide with the peak annual demand for eggs, traditionally heightened during the holiday season. This increased demand is critically linked to holiday baking and cooking activities, with many consumers preparing festive dishes.
Key takeaways highlight not just the alarming shift in prices but also the factors behind it. The rising retail price of eggs reflects severe supply constraints triggered by the bird flu outbreak, which has compelled farmers to cull approximately 17 million egg-laying hens and young pullets since mid-October. This drastic uptick is part of one of the worst spikes seen during the current bird flu outbreak, which began spreading across the nation around February 2022.
Supermarket-goers this past week experienced this crunch firsthand, as prices escalated to unprecedented levels, with some regions in the Midwest reporting costs of $5.67 for a dozen eggs, surpassing the previous high of $5.46 set just last December. According to egg market expert Kiaryn Rispoli, this hike can be attributed to the simultaneous decrease in production due to bird flu combined with skyrocketing holiday demand.
"The back-and-forth between less supply and increased demand for this inelastic product, such as eggs, can result in steep price escalations," noted Rispoli. Consumers are feeling the pinch; average egg prices have jumped 8.2% nationwide over the past month alone, and nearly 38% higher than the same period last year.
The extensive reach of the bird flu’s disruption is unsettling the egg industry. Though higher prices usually benefit producers, there is concern about potential consumer backlash. Prolonged high prices may cause some households to scale back their egg consumption, which could eventually result in decreased demand.
The looming question for many is how the egg market will recover. Recovery is deeply intertwined with how quickly the bird flu outbreak can be contained. If the disease continues to spread unchecked, consumers are likely to see prices soar even higher. Even once bird flu is controlled, experts predict it may take considerable time for the population of egg-laying hens to recover adequately.
California Governor Gavin Newsom declared a state of emergency earlier this week, signaling the urgency of the situation. Avian influenza A (H5N1) has not only impacted hens but has also spread to cattle; 34 human cases have been reported yet with no confirmed person-to-person transmissions. This response demonstrates the extent to which the virus has infiltrated agricultural practices and the importance of proactive measures. "The state had already established the largest testing and monitoring system to respond to the outbreak," according to Newsom's office.
Overall, the economic repercussions of the bird flu outbreak are substantial. The rampant spread has serious consequences for food prices and consumer choices across the United States. It’s clear bird flu is not merely a biological hazard; it's woven deeply this economic fabric affecting producers and consumers alike. The uncertainty surrounding egg prices suggests both parties will be tread carefully, or as the saying goes, walking on eggshells, until the situation stabilizes.
