Egg prices are once again on the rise — and experts warned not to expect relief until at least next year.
Soaring demand coupled with reduced supply due to the ongoing avian flu outbreak has sent the price of eggs surging by 8.5% month-over-month, according to the Bureau of Labor Statistics.
In California, local restaurant owners are struggling to stay afloat as the average price of a dozen eggs has spiked to nearly $9 — up 70% compared to the year before.
Compared to the previous year, prices are up nearly 11%, reflecting both seasonal demand and lingering supply chain issues.
Industry analysts attribute the spike in part to the holiday season, which traditionally sees increased consumer demand for eggs used in baking and holiday meals.
However, deeper structural factors also play a role, particularly the lasting impact of the avian flu outbreak that devastated American poultry farms in 2022 and 2023.
Although poultry production has rebounded somewhat, it remains below pre-pandemic levels, exacerbating supply constraints.
It will take time for egg producers to rebuild their flocks of chickens, so consumers need to be patient before prices start to come down again, according to experts.
Shoppers should expect to see a “continuation of higher-than-usual egg prices,” Kevin Bergquist of Wells Fargo told Yahoo Finance.
David Anderson, a professor of agricultural economics at Texas A&M University, said that egg prices will only start to come down in the second half of this year at the earliest.
“In some of these farms, not only do you lose your current producing chickens, you lose the next generation, which makes it even harder to rebuild total flocks,” Anderson told Yahoo Finance.
While rising prices pinch household budgets, they have proven advantageous for major egg producers like Cal-Maine Foods, the largest egg supplier in the United States.
The company recently reported significant profit growth, buoyed by higher prices and strong demand.
Cal-Maine’s stock has climbed more than 30% over the past year as investors anticipate a windfall from higher egg prices.
Market conditions are expected to remain favorable for producers in 2025, given ongoing supply challenges.
Experts believe that avian flu outbreaks in other regions, coupled with increased global demand for American-made eggs, will further constrain supply.
As of January, farmers have culled over 133 million poultry, including chickens, to control the spread of highly pathogenic avian influenza.
In addition, rising feed costs and regulatory changes around cage-free egg production are likely to keep upward pressure on prices.
“The current market dynamics reflect a perfect storm of factors that will sustain higher egg prices,” said Emily Monroe, a senior analyst at AgriMarket Insights.
“Producers are reaping the benefits, but consumers will continue to feel the strain for the foreseeable future.”
