Why Are Egg Prices So High? – Here’s What’s Really Causing It
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Have you walked into a grocery store lately, strolled over to grab a carton of eggs, and then found yourself seriously questioning your life choices? Yeah, same here. Eggs, once the easy, affordable go-to for breakfast, have suddenly turned into luxury items. Honestly, at these prices, you’d think the chickens were laying solid gold eggs. But sadly, they’re still just regular eggs—and yet the prices keep climbing.
So, what’s going on here? Is this just grocery stores trying to mess with us, or is something deeper at play? In this article, we’ll dive into the egg-conomics (sorry, couldn’t resist) and unpack what’s really driving these crazy prices. We’ll make sense of it all, from avian flu outbreaks to supply-chain headaches, in a way that’s easy for everyone to understand. Here we go.
I. How High Have Egg Prices Really Gone?
In early March 2025, wholesale egg prices briefly shot up to over $8 per dozen. Yeah, you read that right. That’s like paying Netflix prices for something you’re literally cracking open and eating in minutes. Fortunately, this egg-sanity didn’t last too long. Within just one week, wholesale prices fell back down to around $4.15 per dozen, highlighting how incredibly volatile the egg market has become.
But even looking at monthly averages, January 2025 still delivered a record-breaking monthly high of $4.95 per dozen for Grade A eggs. On March 4, it got even crazier, with daily prices hitting $8.15 per dozen nationwide. And if you’re into organic or cage-free eggs, good luck—you might as well be investing in crypto, because prices regularly climbed beyond $10 a carton.
To put this into perspective, just look at how these prices stack up historically:
The Price of Eggs in 2025
Yeah, that spike in early 2025 sticks out like a sore thumb. And while it’s reassuring that wholesale prices are finally trending down (New York markets dropped prices to around $4.78 per dozen by mid-March), it’ll likely be some time before retail prices follow suit.
II. The Primary Cause: The Avian Influenza Epidemic
If you’re wondering who’s to blame for this financial scramble—pun intended—look no further than a nasty culprit called Highly Pathogenic Avian Influenza (HPAI) or H5N1, commonly known as bird flu. The outbreak has led to a massive loss of poultry, disrupting egg production on a scale that is difficult to overstate.
Here’s how severe the damage has been:
When you lose that many egg layers, the math is pretty simple: fewer chickens = fewer eggs = higher prices. And sadly, the bird flu isn’t letting up. In February 2025 alone, we lost another 12 million egg-layers, bringing the total to over 35 million birds impacted within just a few months of the year.
Part of why prices spike so dramatically is the brutal but necessary strategy farms employ when bird flu hits: euthanizing entire flocks to prevent the virus from spreading. Imagine having to shut down your entire business overnight every time one employee catches a cold—that’s essentially what’s happening here, except we’re talking millions of birds and billions of eggs. The disease is so lethal, with a nearly 100 % mortality rate among chickens, that this drastic step is unfortunately mandatory.
To give you a human analogy: it’s more deadly to chickens than Ebola is to us—yep, even Ebola. That’s why farms have no choice but to depopulate quickly, leading to massive egg shortages and prices soaring through the roof.
Since 2022, we’ve averaged losing around 42.3 million egg-laying hens per year, wiping out roughly 11 % of the entire egg-laying chicken population annually. With losses like that, it’s no wonder the humble egg suddenly feels like a premium commodity.
The aftermath? Your breakfast has turned into an unintended luxury, all thanks to some incredibly unlucky chickens. But hopefully, the downward trend in wholesale prices means relief is on the horizon.
III. What Are Other Factors Scrambling Egg Prices?
While avian flu has been the primary driver behind rising egg prices, it’s not the only factor at play. A combination of economic pressures, regulatory changes, and supply chain disruptions has further contributed to the surge, creating a perfect storm for consumers.
Let’s crack open these additional reasons one by one (sorry about all the egg puns, but ****I think finding humor in economic frustration is practically a survival skill at this point).
1. Rising Production Costs
First, there’s inflation. Farmers are feeling the pinch just like the rest of us, dealing with rising costs on almost every front—from chicken feed to fuel, electricity, and even labor. You name it, it’s probably gotten more expensive. And when farmers pay more, guess who else pays more? Yep, you guessed it—you and me.
Feed costs are especially crucial here because feeding those hens makes up a whopping 50-70 % of egg production expenses. Corn and soybean meal—the main ingredients in chicken feed—have gotten pricier thanks to climate disruptions (think droughts and flooding) and messy global trade policies. To give you an idea:
| Feed Component (50 lb bag) | Mid-March 2025 Price |
|---|---|
| Layer Mash | $17.19 |
| Cracked Corn | $13.49 |
| Soybean Meal | $22.25 |
These prices will vary by region and supplier, but the trend is clear: feeding chickens is getting more expensive, and that cost gets passed directly to consumers.
If that wasn’t enough, the Producer Price Index (PPI) for poultry feed confirms the upward trend. Between January and February 2025, the index for chicken and turkey feed, supplements, and concentrates rose from 229.527 to 230.498. That might not seem like a huge jump, but when you apply those costs to millions of birds, the impact on egg prices is massive.
So, feeding chickens these days feels a bit like filling your car’s gas tank—painful and unavoidable.
Speaking of gas, energy prices have spiked too, adding extra pressure to production and distribution costs. Think about it: trucks delivering eggs don’t run on hopes and dreams (though it would be nice). They run on increasingly expensive diesel, and those refrigeration units keeping eggs fresh aren’t cheap to power either.
And let’s not overlook labor shortages. With fewer people available or willing to work farm jobs, farmers often have to pay higher wages just to keep the lights on. When labor costs rise, again, we’re the ones footing the bill.
2. The Cage-Free Trend (and State Regulations)
Many consumers (myself included) are now demanding eggs produced under more humane conditions, meaning cage-free setups. Sure, it’s great news for the chickens—but it’s not exactly cheap news for the farmers.
Switching from traditional battery cages to cage-free environments requires more space per hen and significant investments in new infrastructure. To put this into context, cage-free eggs typically cost around 30-50 % more than standard eggs.
And then there’s government regulations. Several states—California, Massachusetts, and recently Colorado (as of January 2025)—have laws requiring grocery stores selling more than 25 cases of eggs per week to carry only cage-free eggs. This mandatory shift naturally tightens the supply and pushes prices upward. California, for instance, experienced bird flu outbreaks that had a larger-than-usual impact due to its concentrated cage-free supply.
Basically, every time a new state joins the cage-free trend, the squeeze on your wallet tightens just a bit more. Expect to see this trend continue, meaning egg prices might stay elevated for a while longer.
3. Supply Chain Issues
Finally, there’s logistics. Getting eggs from farms to your fridge isn’t exactly as simple as grabbing an Uber Eats delivery. There’s a complex web of transportation and refrigeration logistics involved, and lately, that web has gotten tangled.
A significant issue right now is the ongoing shortage of truck drivers across the U.S. Fewer drivers means fewer trucks—and fewer refrigerated trucks specifically—to transport perishable eggs safely and promptly. When there aren’t enough drivers, shipping prices rise, and naturally, those extra costs trickle down to us.
Let’s say you’re trying to ship ice cream on a hot summer day with limited ice cream trucks. You’d probably pay premium prices to keep it from melting, right? That’s exactly what’s happening with eggs—minus the sprinkles and chocolate syrup, sadly.
As you can see, the egg price problem isn’t just a one-dimensional issue. It’s more like a scrambled mess of multiple challenges: rising production costs, cage-free regulations, and logistical headaches, all piled onto the already devastating effects of bird flu. The good news is some relief might be on the horizon—but for now, your breakfast burrito might feel just a tad luxurious.
IV. It’s Just Supply and Demand, Right? The “Eggonomics” of Inelasticity
At its core, the price of eggs boils down to basic economics: supply and demand. But eggs aren’t your average commodity—there’s something special happening here, and it’s called “inelastic demand.”
Now, what the heck does “inelastic” even mean? Well, imagine coffee. If Starbucks doubles their prices tomorrow, sure, you might groan—but many people will still shell out (pun intended) the extra money, because nothing else scratches that coffee itch. Eggs are surprisingly similar. Even if prices rise, consumers typically don’t dramatically change how many eggs they buy—because there just aren’t great substitutes, especially for baking. (I mean, have you ever tried making cookies without eggs? Good luck. It’s possible. But not quite the same.)
Well, here’s why eggs are so stubbornly inelastic:
Limited Substitutes
While there are certainly great egg-free pancake recipes out there, for most people, eggs remain an essential ingredient in baking. You can’t simply swap in tofu or almond milk for the same results—especially if you’re trying to recreate your grandma’s famous pancake recipe.
Cost-Effective Protein
Despite recent hikes, eggs remain a relatively affordable and convenient protein source for most households, meaning people still buy them—even if grumbling all the way to checkout.
This unique characteristic creates a perfect storm when there’s a supply disruption—like our “friend”, the avian flu. With egg supply drastically reduced but demand staying pretty steady, prices shoot up dramatically. Economists have found something quite remarkable: even an 11 % drop in egg supply can potentially double egg prices! This happens because you’ve got to push prices pretty high before people finally say, “Okay, maybe I’ll skip the omelet today.”
V. Are Egg Farmers Rolling in Dough Now?
With egg prices soaring, it’s tempting to picture egg farmers kicking back and counting stacks of cash. But unfortunately, that image doesn’t match reality. Sure, consumers are paying higher prices—but that doesn’t mean farmers are suddenly swimming in profits.
In reality, many egg producers are hurting, not thriving. The main reason? We’ve mentioned it earlier: The avian flu has decimated their flocks, causing massive production losses. Imagine you’re running a small business, and suddenly, overnight, you lose your entire inventory. That’s exactly what’s happening to egg farmers. Millions of hens—literally their livelihoods—have had to be destroyed to stop the disease from spreading.
Yes, there’s some financial assistance from the USDA, which offers indemnity payments to farmers forced to euthanize their birds. But those payments barely scratch the surface. They don’t cover:
The full cost of cleanup and sanitization after an outbreak.
The months (or even a full year) it takes to raise new hens from chicks until they’re mature enough to lay eggs.
The income lost during this downtime.
To put this into perspective, imagine your workplace burned down. Even if insurance covers the building, you’re still out of work until everything is rebuilt. That’s precisely what’s happening here, except instead of buildings, we’re talking entire flocks of hens—and often years of investment wiped out in days.
And beyond financial pain, these farmers are also dealing with emotional loss. Losing an entire flock of hens, often numbering in the hundreds of thousands or even millions, isn’t just financially devastating—it can be deeply traumatic for farm families who’ve dedicated their lives to egg farming.
So, when you’re handing over that extra cash at the grocery store, remember: the higher prices aren’t turning farmers into millionaires. Instead, they’re a painful reflection of a devastating disease and massive supply shortages.
VI. Are Tariffs Also Affecting Egg Prices?
So, we’ve talked about bird flu, supply chain snags, and skyrocketing production costs. But there’s another sneaky factor chipping away at your wallet—tariffs. Now, you might be thinking, “Wait, aren’t eggs mostly produced domestically?” And you’d be right. The U.S. is largely self-sufficient when it comes to eggs. But here’s the thing: it’s not just about the eggs themselves.
Another problem? The cost of everything that goes into producing those eggs.
Tariffs may not be as dramatic as a deadly poultry virus, but they’re quietly making eggs more expensive in ways you wouldn’t expect. Such as:
Feed Costs Are Going Up
We’ve talked about this earlier: The two key ingredients in poultry feed, soybean meal and corn, are heavily impacted by global trade policies. If tariffs make these imports pricier, farmers pay more to feed their hens, and those costs inevitably trickle down to you at checkout. Considering that feed makes up 50-70 % of the total cost of egg production, even a small increase can send prices soaring.
Farm Equipment & Supplies Aren’t Cheap Either
Even if the eggs are laid right here in the U.S., the equipment used to produce them—things like incubators, processing machinery, and even packaging materials—often comes from abroad. When tariffs raise the cost of these imports, farmers have to spend more just to keep their operations running. And guess who ends up covering that extra cost? You.
The Indirect Ripple Effect
Tariffs don’t just affect direct imports—they also create market uncertainty, causing global commodity prices to fluctuate. When prices for agricultural imports rise, they disrupt supply chains, increase inflationary pressures, and lead to even higher grocery bills across the board.
Example
Let’s say you run a lemonade stand. Business is good. But then, out of nowhere, tariffs are slapped on imported sugar and lemons. Even though you’re selling a “domestic” product (homemade lemonade), your costs suddenly shoot up. You’ve got two choices: either raise your prices or take a loss. Since running a business at a loss isn’t exactly a great strategy, you end up charging customers more for the same lemonade.
That’s exactly what’s happening in the egg industry—tariffs on imported farm inputs (feed, machinery, packaging) force producers to raise prices, even though the eggs themselves never cross a border.
So, Are Tariffs the Main Reason for High Egg Prices?
No, at least not exactly. Compared to avian flu, labor shortages, and supply chain breakdowns, tariffs aren’t the biggest driver behind rising egg prices. But they do act like an invisible tax on production, making an already expensive product even costlier.
So while tariffs might not make the headlines like bird flu, they’re still part of the problem—another hidden ingredient in the recipe that’s making your breakfast way more expensive.
VII. Final Thoughts: What Does This Mean for Your Wallet?
There’s no sugarcoating it: these egg prices hurt, and they’re hitting our grocery bills hard. In January 2025 alone, rising egg prices accounted for about two-thirds of the total increase in overall food costs nationwide. Talk about expensive omelets!
But luckily there’s a twist—even though eggs are usually inelastic, we’ve reached a tipping point. Over half of consumers have now started buying fewer eggs due to these crazy prices. So yes, demand may be inelastic, but apparently, there’s a breaking point, and we’ve found it.
We’re also seeing a ripple effect in stores. High prices have led to panic buying, causing further shortages. Remember the great toilet paper fiasco of 2020? Yeah, eggs are having their own moment now. Many retailers have had to introduce purchase limits to prevent folks from walking out with their weight in eggs. (Even though hoarding eggs isn’t going to help—they don’t exactly store like canned beans.)
I think what really helps is the following:
Buying fewer eggs overall (no surprises there).
Switching to alternative proteins (e.g. oatmeal, yogurt, and peanut butter).
Shopping around—checking multiple stores or waiting for prices to drop.
Paying up for premium or cage-free eggs if standard ones run out (because at least you’re getting something for your money).
At this point, eggs almost feel like luxury goods—like you’re splurging on designer sneakers instead of breakfast. But hang tight; historically, these extreme price spikes have eventually calmed down.
Maybe it's time to seriously consider those chicken-less egg substitutes... or perhaps just appreciate the humble egg a little more the next time you do find a reasonably priced carton.
That said, I’d love to hear your thoughts! Have you changed your shopping habits because of high egg prices? Have you found any smart ways to save? Drop a comment below and let’s talk about it.
Also, if you enjoy deep dives like this into how economic trends impact your wallet, consider subscribing to my finance newsletter! You’ll get insightful breakdowns, market trends, and money-saving strategies straight to your inbox—without the fluff. Sign up today and stay ahead of the curve!
Thanks a lot for reading! Take care, and see you around.
FAQ
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Egg prices have surged due to a perfect storm of supply shortages and rising costs. The biggest culprit? Avian flu, which wiped out millions of egg-laying hens, cutting supply and driving up prices. But that’s not all—higher feed costs, supply chain disruptions, regulatory changes, and market volatility have all contributed to the price increases.
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It’s hard to say for sure, but some relief is already happening at the wholesale level. As more hens are added back into production and supply stabilizes, prices should continue to drop. However, long-term factors like rising production costs and state regulations could keep eggs more expensive than they were pre-2022.
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Not exactly. While higher prices mean higher revenues, many farmers are actually struggling due to the huge financial losses from avian flu. When an outbreak hits a farm, entire flocks must be culled, leaving farmers with no income until they can rebuild—which can take up to a year. Some large producers have seen record earnings, but for smaller farms, it’s been a challenging time.
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Unlike some other food products, eggs are primarily produced and consumed domestically. Importing eggs comes with strict regulations, storage challenges, and logistical issues. While some eggs have been brought in from countries like Mexico and Brazil, global bird flu outbreaks have also limited surplus supply worldwide.
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Eggs have inelastic demand, meaning that even when prices rise, people still buy them. There aren’t many great substitutes for eggs, especially for cooking and baking, so a drop in supply (even just 10–15 %) can lead to huge price increases. That’s why the effects of avian flu and production costs have been so extreme.
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Compare prices across stores—some retailers adjust prices more slowly than others.
Buy in (reasonable!) bulk when prices dip, as eggs last a while in the fridge.
Look for local farmers or markets, which sometimes offer better prices than big chains.
Consider alternatives like egg substitutes or plant-based options when prices spike.
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Probably not—but they might not return to pre-inflation levels, either. Wholesale prices have started dropping, which is a good sign for consumers. But factors like cage-free mandates, feed costs, and labor shortages could keep prices elevated compared to a few years ago.
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