The wholesale price of eggs has far exceeded historical highs as the United States strives to control the outbreak of avian influenza.

date
11/02/2025
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GMT Eight
Analysts say that as the United States strives to control the outbreak of avian flu, wholesale egg prices have reached historic highs, and consumers may soon see more price shocks at local grocery stores. Data from Expana, a company tracking the prices of Shenzhen Agricultural Power Group, shows that last Friday, the average wholesale price of large white shell eggs reached $8 per dozen, significantly breaking previous records. Expana's market reporter Ryan Hojnowski wrote in an email, "The previous historical high was reached on the eve of Christmas at the end of December 2022, when we reached $5.46 per dozen." "Of course, this time we have far exceeded that level." Hojnowski explained that the increase in wholesale prices usually takes a few weeks to be reflected in retail stores. He said the correlation between retail price trends and wholesale price trends will vary depending on the grocery store. Economists: Avian flu leads to egg supply shortage While inflation in the United States is generally slowing down, the increase in egg prices has caused consumer anxiety. Due to the price increase, retailers such as Trader Joe's and CostCo have imposed some restrictions on consumers purchasing eggs. More importantly, Waffle House chain restaurants have started charging customers an additional fee of 50 cents per order of eggs. This is not the only restaurant that has done so. According to a recent article in a foreign media outlet, some local restaurants have also increased the cost for customers to consume eggs, such as Storm's Drive-In restaurant in Texas and Kroll's Diner restaurant in Fargo, North Dakota. Data from the U.S. Bureau of Labor Statistics shows that in December of last year, consumers on average purchased a dozen large Grade A eggs at retail for $4.15. While lower than the retail historical high of $4.82 per dozen in January 2023, retail prices have risen by 65% from around $2.51 in December 2023, and the price pressure does not seem to be easing. Experts say that "highly pathogenic avian influenza," commonly known as avian flu, is the main reason for the increase in egg prices. This highly contagious and deadly disease in poultry has already led to the deaths of millions of chickens on commercial egg farms and reduced egg supplies. To prevent the spread, farmers must kill their entire flock if cases are discovered. Amy Smith, Vice President of Advanced Economic Solutions, a consulting firm specializing in Shenzhen Agricultural Power Group, said that over 40 million laying hens died in 2024, accounting for about 13% of the total nationwide. Smith cited data from the U.S. Department of Agriculture, saying that as a result, the inventory of shell eggs is about 15% to 16% lower than the five-year average level. The USDA data shows that there are currently approximately 1.2 million cases of shell eggs in inventory, with 30 dozen per case. Smith said that nearly 22 million laying hens died in the fourth quarter of 2024, causing a supply shock that directly entered the seasonal peak of demand before and after the winter holidays, such as when more families purchase eggs for baking recipes. She said that wholesale prices are "three to four times what they were a year ago," and this growth is "very significant." How wholesale prices affect consumers Depending on the grocery store, consumers may not see price increases penetrate store shelves so dramatically. Hojnowski wrote, "Large national retailers like Walmart and Aldi typically have more flexibility to absorb the increase in wholesale prices." He said they may be able to offset the increase in wholesale costs by increasing the profit margins of other foods, or by securing some egg supply through fixed price contracts. Many are doing this. However, smaller independent retailers do not have the same economies of scale and need to maintain the profitability of each item, "which leads them to adjust prices more quickly to respond to changes in the wholesale market," Hojnowski said. Why chicken meat is less affected than eggs Experts say that avian flu has been troubling egg farms until 2025, meaning that supplies may continue to be affected. According to data from the U.S. Department of Agriculture, more than 22 million laying hens have died from avian flu so far in 2025. In comparison to eggs, avian flu does not seem to have had as much of an impact on chicken meat production, at least not yet. According to data from the U.S. Bureau of Labor Statistics, from December 2019 to December 2024, the average retail price of eggs increased by about 170%. In contrast, the average retail price of a pound of fresh whole chicken increased by about 42% during the same period. The price of a pound of boneless chicken breast increased by about 32%. All three of these saw higher inflation during this period than the overall average measured by the Consumer Price Index (CPI) in the United States, which rose by about 23%. Experts say this is mainly due to the impact of avian flu on different types of chickens. Chickens raised for eggs are different from those raised for chicken meat, which are called "broilers." Since the outbreak of avian flu in October last year, approximately 7.5 million broiler chickens have died from avian flu, said Matt Busardo, head of the U.S. Poultry Research Group. In contrast, over 20 million laying hens have died since the beginning of 2025. Busardo said, "This alone can make it clearer why the price of eggs is rising so much faster than the price of chicken meat." He said that due to disease complications limiting supply, the wholesale price of chicken meat is increasing slowly. While these prices "have the potential for greater increases," the speed of increase "may not necessarily be the same as eggs, at least not right now."

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