As the holiday baking season approaches, Americans face egg shortages and price hikes due to a widespread bird flu outbreak.
At a Glance
- Egg prices have risen 30.4% from last year due to bird flu outbreaks
- Over 108 million poultry in 48 states have been affected by bird flu
- Whole Foods is limiting egg purchases to three cartons per customer
- Egg production dropped 2.6% in October and is expected to decline further
- Experts advise against panic buying as shortages are expected to be intermittent
Bird Flu Devastates U.S. Poultry Farms
The United States is grappling with a severe outbreak of Highly Pathogenic Avian Influenza (HPAI), commonly known as bird flu. This virus has wreaked havoc on poultry farms across the nation, affecting over 108 million birds in 48 states. Recent outbreaks in Utah, Washington, and Oregon have resulted in the loss of 2.8 million birds, exacerbating an already dire situation for egg producers and consumers alike.
The impact of this outbreak on egg production has been significant. October saw a 2.6% decrease in egg production compared to 2023, with further declines expected in 2025. This reduction in supply, coupled with increased demand during the holiday baking season, has led to a sharp rise in egg prices.
Grocers report egg shortage ahead of holidays amid surging bird flu https://t.co/nMzRRLDMWr via @Yahoo
— Shepherdess2 (@MtnShepherdess) November 21, 2024
Egg Prices Soar as Supply Dwindles
The national average price for a dozen eggs has climbed to $3.37, marking a staggering 30% increase from the previous year. In some regions, particularly those with strict cage-free requirements, the price hike has been even more severe. California, for instance, has seen cage-free egg prices skyrocket by nearly 90% compared to last year.
“Bird flu is by far the biggest factor involved with egg prices,” says Bernt Nelson, an economist with the American Farm Bureau Federation.
The United States Department of Agriculture (USDA) predicts that egg prices will continue to rise into late 2024 and early 2025. This prolonged period of high prices is attributed not only to the bird flu outbreak but also to increased costs for feed, labor, transportation, and packaging.
Retailers Implement Purchase Limits
In response to the supply shortage, some retailers have begun implementing purchase limits on eggs. Whole Foods Market, for example, is now restricting customers to three cartons of eggs per visit. This move is designed to prevent panic buying and ensure a fair distribution of the limited supply.
“Where we are hearing reports of shortages it’s at stores like a Whole Foods or a Trader Joe’s,” said Emily Metz, CEO of the American Egg Board.
Despite these challenges, consumer demand for eggs remains robust. Sales are up 4.6% year-on-year, indicating that Americans continue to view eggs as a dietary staple, even in the face of rising prices.
Cage-Free Requirements Complicate the Issue
The shift towards cage-free egg production, driven by consumer preferences and state regulations, has inadvertently contributed to the current shortage. Over 40% of U.S. egg-laying hens are now in cage-free facilities, which have been disproportionately affected by the bird flu outbreak. In fact, 60% of recent bird flu cases have occurred on cage-free farms.
The U.S. currently needs 221.4 million cage-free hens to meet the national demand, but only has 106.6 million. This shortfall, combined with the impacts of bird flu, has created a perfect storm for egg shortages and price increases.
Hope on the Horizon
Despite the current challenges, there is reason for optimism. USDA data suggests that egg production may rebound next year, with replacements already in the pipeline. Egg farmers are working tirelessly to meet demand, especially during the crucial holiday season.
“Egg farmers are working around the clock to ensure their customers and consumers have every kind of egg they need,” insisted Metz.
Experts advise consumers not to panic, as any shortages are expected to be intermittent rather than widespread. By avoiding excessive purchasing, consumers can help prevent further disruptions and allow for a swifter recovery of the egg supply chain.
