US eggs prices hit a record high of US$4.95 and are likely to keep climbing

OMAHA, Nebraska (AP) — Egg prices reached a record high in the US last month, the Bureau of Labor Statistics reported Wednesday.

The latest monthly consumer price index confirmed what consumers, bakers and food companies already knew: an ongoing bird flu outbreak that began in 2022 are making eggs terribly expensive right now.

The average price of a dozen Grade A eggs in US cities reached US$4.95 in January, eclipsing the previous record of US$4.82 set two years earlier and more than double the recent low of US$2.04 that was recorded in August 2023.

Of course, that is only the nationwide average. A carton of eggs can cost US$10 or more in some places. And specialised varieties, such as organic and cage-free eggs, are even more expensive.

Prices are only going to get worse. Prices always spike around Easter every year because demand is high around the holiday. The US Department of Agriculture predicted last month that egg prices were likely to go up 20 per cent this year.

And even if consumers can afford eggs, it can be hard to find them at times as some stores have trouble keeping their shelves stocked. Some grocers have imposed limits on how many eggs customers can buy at a time.

The main reason that eggs are more expensive is the bird flu outbreak. When the virus is found on a farm, the entire flock is killed to limit the spread of disease. Because massive egg farms may have millions of birds, just one outbreak may put a dent in the egg supply.

The Agriculture Department says more than 23 million birds were slaughtered last month and more than 18 million were killed in December to limit the spread of the bird flu virus. Those numbers include turkeys and chickens raised for meat, but the vast majority of them were egg-laying chickens.

Egg farmers also face higher feed, fuel and labour costs these days because of inflation. Plus, farmers are investing more in biosecurity measured to try to protect their birds.

Ten states have passed laws allowing the sale of eggs only from cage-free environments. The supply of those eggs is tighter and focused in certain regions, so the effect on prices can be magnified when outbreaks hit cage-free egg farms.

Many of the egg farms with outbreaks were cage-free farms in California. Cage-free egg laws have already gone into effect in California, Massachusetts, Nevada, Washington, Oregon, Colorado and Michigan.

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