Egg prices are on the rise again, with experts warning that they are unlikely to ease until at least next year.
Rapid increase in demand and decrease in supply due to the spread of avian influenza Egg prices rose 8.5% month-on-monthAccording to the Bureau of Labor Statistics.
In California, local restaurant owners are struggling to stay afloat as the average price of 12 eggs has soared to nearly $9, up 70% from a year ago.
Compared to last year, prices are up nearly 11%, reflecting both seasonal demand and lingering supply chain issues.
Industry analysts attribute the surge in part to the holiday season, when consumer demand for eggs, traditionally used in baking and holiday meals, increases.
But deeper structural factors are also at play, particularly the lasting impact of the avian influenza outbreak that devastated American poultry farms in 2022 and 2023.
Although poultry production has recovered slightly, it remains below pre-pandemic levels, exacerbating supply constraints.
Experts say it will take time for egg producers to rebuild their flocks, so consumers should be patient until prices start to fall again.
Wells Fargo's Kevin Bergquist said shoppers should expect “higher-than-normal egg prices to continue.” told Yahoo Finance.
David Anderson, a professor of agricultural economics at Texas A&M University, said egg prices won't start falling until the second half of this year at the earliest.
“Some of these farms will not only lose the chickens they are currently producing, they will lose the next generation, making it even more difficult to rebuild the entire chicken population,” Anderson said. told Yahoo Finance.
While rising prices put pressure on household budgets, they have proven advantageous for large egg producers such as Calmaine Foods, the largest egg supplier in the United States.
The company recently reported a significant profit increase, supported by rising prices and strong demand.
Carmain's stock price has risen more than 30% over the past year as investors hope for a windfall from rising egg prices.
Market conditions are expected to remain favorable for producers in 2025, given ongoing supply challenges.
Experts believe outbreaks of avian influenza in other regions and increased global demand for U.S. eggs will further limit supply.
As of January, farmers had culled more than 133 million poultry, including chickens, to prevent the spread of highly pathogenic avian influenza.
Additionally, rising feed costs and regulatory changes regarding cage-free egg production are likely to continue to put upward pressure on prices.
“Current market trends reflect a perfect storm of factors that will keep egg prices elevated,” said Emily Monroe, senior analyst at AgriMarket Insights.
“Producers are benefiting, but consumers will continue to feel the burden for some time.”
