NEW YORK — Egg prices have surged to new heights in February, driven by the ongoing avian flu outbreak and the approaching Easter and Passover holidays.
According to the latest Consumer Price Index, the average cost of a dozen Grade A eggs in U.S. cities reached $5.90 in February, a 10.4% increase compared to the previous year. This surpasses the previous record of $4.95 set in January.
The avian flu outbreak has led to the culling of over 166 million birds by farmers, primarily egg-laying chickens. Since the beginning of the year, over 30 million egg-laying hens have been culled.
If elevated prices persist, consumers will face a third consecutive year of inflated egg costs leading up to Easter on April 20 and Passover, which begins on the evening of April 12. Eggs are a key ingredient in traditional dishes for both holidays.
Egg prices consistently remained below $2 per dozen for decades before the outbreak. The U.S. Department of Agriculture anticipates a 41% increase in egg prices this year compared to last year’s average of $3.17 per dozen.
However, there may be positive signs emerging. The USDA reported last week that egg shortages are easing, and wholesale prices are declining. This could lead to price relief for consumers before the later-than-usual Easter holiday, which falls three weeks later compared to the previous year. The USDA also noted the absence of major bird flu outbreaks for the past two weeks.
According to the USDA’s March 7 report, “Shoppers have begun to see shell egg offerings in the dairycase becoming more reliable although retail price levels have yet to adjust and remain off-putting to many.”
David Anderson, a professor and extension economist at Texas A&M University specializing in livestock and food marketing, believes the drop in wholesale prices suggests potential price reductions for consumers, especially as shoppers respond to the high costs by purchasing fewer eggs.
“What that should tell us is things are easing a little bit in terms of prices,” he stated. “So going forward, the next CPI report may very well indicate falling egg prices.”
However, he cautions that lasting changes are unlikely until bird stocks are replenished and production levels are restored.
“Record high prices is a market signal to producers to produce more, but it takes time to be able to produce more, and we just haven’t had enough time for that to happen yet,” he explained. “But I do think it’s going to happen. But it’s going to take some more months to get there.”
Emily Metz, president and CEO of the American Egg Board, welcomed the decrease in wholesale prices but cautioned that increased demand for Easter could temporarily drive up prices.
“In addition, egg farmers are closely watching spring migration of wild birds, recognizing that wild birds are a leading cause of the spread of this virus and pose a great and ongoing threat to egg-laying flocks,” she added.
Advocacy groups and others have requested an investigation into potential price gouging by egg producers due to the avian flu. However, egg producers maintain that the avian flu is the sole cause of the increased prices.
Meanwhile, restaurants have implemented surcharges and other adjustments to compensate for the higher cost of eggs.
The Trump administration has announced a plan to combat bird flu, including a $500 million investment to help farmers improve biosecurity, $400 million in additional assistance for farmers affected by avian flu, and $100 million for research and development of vaccines and therapeutics for U.S. chicken flocks, among other initiatives. However, the plan’s impact is not expected to be immediate.