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US egg production drops as prices continue to rise along with bird flu cases

U.S. egg production fell 4% in November due to egg prices and continued outbreaks of bird flu across the United States, according to a USDA report.

The National Agricultural Statistics Service of the Department of Agriculture announced that egg production in November was 8.92 billion eggs, down 4% from the same period last year.

Of the 8.92 billion eggs produced, 7.68 billion are edible eggs and 1.24 billion are hatching eggs, the main difference being that eaten eggs are infertile and cannot develop into chicks. That's not possible.

Additionally, the number of eggs laid in November was 376 million, down 3% from last year, with an average of 2,374 eggs produced per 100 layers.

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This illustration shows a test tube and an egg labeled “Bird Flu.” (Reuters/Dado Luvić/Reuters Photo)

Since November, the number of layers has decreased further, with USDA reporting a total of 375 million layers as of December 1, 2024, a 3% decrease from last year.

The news comes amid rising egg prices, a trend that industry experts believe will continue if infections of highly pathogenic avian influenza (HPAI), also known as “avian flu”, continue. It is expected to last until 2025.

Kevin Bergquist, Wells Fargo Agriculture and Food Research Institute sector manager, said egg prices have been rising since 2023 due to a combination of seasonal price increases during the holidays and disruptions to egg supply due to avian influenza.

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Modern poultry farm for breeding white chickens and eggs, multi-level conveyor, indoors, copy space, poultry farming (license/image)

Prices over the past year have “generally” been higher than prices in 2023, Bergquist said, and “often exceeded egg prices in 2022 and beyond, when HPAI really took hold of the egg market.”

Wholesale egg prices, which soared nearly 55% in November, do not necessarily reflect consumers' prices for eggs at grocery stores, and prices can fluctuate widely.

Grocery prices rose 0.5% in November, according to the Consumer Price Index, with four of the six major grocery store food groups increasing prices. Eggs showed the largest increase by a wide margin.

Egg prices will continue to rise until 2025

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In the hands of a woman packing eggs at the supermarket (license/image)

Meat, poultry and fish prices rose 1.7% in November, while egg prices rose 8.2%.

Before the major bird flu outbreak in March 2022, herd numbers were at levels that supported the drop in egg prices, Bergquist said. He noted that the wholesale price was less than $1.50 per dozen.

However, the outbreak disrupted the market, and egg prices rose to a record high in December 2022. Average prices have corrected to lower levels by 2023 as producers rebuild their flocks.

Bergquist said a resurgence of avian influenza in late 2023 and 2024 was once again hampering flock size, resulting in a lack of supply in the egg market.

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Due to the recurrence of outbreaks this year, producers have not yet been able to rebuild entire spawning herds.

FOX Business' Daniella Genovese contributed to this report.

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