US egg costs are hovering to report highs as farmers are compelled to slaughter hundreds of thousands of chickens in an try and halt the unfold of chook flu, which has ripped by way of the nation’s poultry barns in current months.
A dozen eggs reached greater than $8 in wholesale markets this week, greater than double the value of a yr in the past and the very best ever recorded, in line with Expana, a commodity worth info service. Grocers together with Walmart and Kroger have begun to ration purchases in sure circumstances. The Waffle Home chain — a staple within the US south and Midwest — has tacked a surcharge of fifty cents an egg on to its dishes.
Provides of contemporary eggs are falling brief as farmers cull hundreds of thousands of hens to regulate a variant of avian influenza that first emerged in a US business flock three years in the past.
Like petrol costs, eggs are a visual, if risky, signpost of inflation to customers. The buyer worth index elevated by 3 per cent yr on yr in January, with an index for eggs climbing greater than 50 per cent, the Bureau of Labor Statistics reported on Wednesday. The common US resident will eat about 270 eggs this yr, the US Division of Agriculture forecasts.
Egg costs even have political resonance and have been an assault line in final yr’s marketing campaign for the White Home. Then US vice-presidential candidate JD Vance in September stood earlier than a grocery store egg case to criticise the financial insurance policies of his predecessor Kamala Harris, when the US metropolis common worth of huge Grade A eggs was $3.82 a dozen, in line with the Bureau of Labor Statistics. The value was $4.95 in January.
Democrats have now seized on the problem. “We went to get some eggs, and we can see the prices of these eggs had now jumped to about $8. But there were no eggs,” Ted Lieu, a Democratic consultant from California, mentioned this week of a current journey to the grocery retailer.
Waffle Home, a well-liked US breakfast chain, has carried out a 50 cent surcharge per egg © AFP/Getty Pictures
The highest egg retailers are Walmart, Costco, Kroger, Albertsons and Aldi, in line with Numerator. A majority — 55 per cent — of customers have observed shortages or out-of-stock eggs native retailers, the market analysis agency mentioned.
Chains together with Kroger, Aldi and Walmart have imposed restrictions on purchases, at sure places or in sure bundle sizes.
“Although supply is very tight, we’re working with suppliers to try and help meet customer demand, while striving to keep prices as low as possible,” mentioned Walmart, which is limiting purchases of 60-count cartons to 2 per go to.
Cal-Maine Meals, the biggest US producer and distributor of contemporary shell eggs, mentioned demand was outpacing provide because it reported quarterly gross revenue of $356mn, a fourfold enhance from a yr earlier than.
“Without question, we have recently faced significant challenges within our company and the entire egg industry due to the ongoing outbreaks” of avian influenza, Sherman Miller, chief government, mentioned final month.
Farmers have misplaced about 46mn laying hens prior to now 4 months, or 15 per cent of a nationwide flock of 304mn, mentioned Karyn Rispoli, managing editor at Expana. “While bird flu has come and gone in waves over the past few years, this current outbreak is the most severe yet, with no signs of slowing,” she mentioned.
Gino Lorenzoni, affiliate professor of poultry sciences and avian well being at Penn State College, mentioned the virus is usually unfold from farm to farm by wild birds. Staff coming into contact with their droppings can carry it right into a rooster barn on their boots.
As soon as a single case is detected, a whole flock should be culled.
“The virus is very deadly,” Lorenzoni mentioned, however the trade tries “to get there very fast and kill the animals before the virus has a chance to spread to other facilities”.
A girl sells eggs on the Union Sq. Greenmarket in New York on February 10 2025 © Shannon Stapleton/Reuters
Egg costs have risen not solely as a result of the flock of laying hens had declined, however as a result of enhanced biosecurity measures reminiscent of disposable coveralls, booties and hairnets and enhanced disinfection protocols have been driving up working prices on farms, he mentioned.
As nicely, market demand for cage-free eggs had been rising prices, as every barn accommodates fewer animals, Lorenzoni mentioned.
The USDA this week raised its forecast for the typical wholesale worth of Grade A eggs to $4.44 a dozen for 2025, up by greater than half from its projection in January. The division projected US hens will lay 8.96bn dozen eggs this yr, chopping its outlook from final month.
Really useful
Costs have remained strong partly due to strong demand over the winter holidays, mentioned Amy Smith, vice-president at Superior Financial Options, a meals and agriculture consultancy. Extreme winter storms within the south-east final month led households to fill up, whereas customers who’re taking widespread GLP-1 weight-loss medication have been shifting their diets in the direction of proteins.
Supermarkets have in some circumstances stored their retail egg worth under the wholesale worth as a loss chief, to draw prospects to shops, mentioned Smith and at Expana’s Rispoli.
“While some price increases have been passed through, they haven’t been significant enough to curb consumer interest,” Rispoli mentioned.
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