Egg prices have been making headlines, skyrocketing to unprecedented levels and leaving many consumers reeling.
From bird flu outbreaks to changing agricultural regulations, the egg industry has been facing a storm of challenges.
This blog delves into the causes behind the surging prices, explores the impacts on consumers and businesses, and examines potential alternatives like raising chickens.
Why Are Egg Prices So High?
1. Avian Flu Outbreaks
The most significant driver behind the spike in egg prices has been the highly pathogenic avian influenza (HPAI).
This disease, commonly known as bird flu, has decimated poultry populations across the United States.
According to the Centers for Disease Control and Prevention (CDC), over 128 million birds have been infected.
Once detected, flocks must be euthanized to prevent further spread, leading to a sharp decline in egg production.
In California alone, millions of egg-laying chickens were lost in late 2022 due to the outbreak.
This state, which mandates cage-free egg production, was hit particularly hard as the disease ravaged cage-free flocks in regions like Merced and Stanislaus counties.
Nationwide, the number of birds lost in December alone totaled over 6 million.
2. Regulatory Changes
California’s Proposition 12, which went into effect in 2022, requires all eggs sold in the state to come from cage-free hens.
While this regulation aims to improve animal welfare, it has increased production costs for farmers.
Cage-free systems require more space, labor, and resources, all of which contribute to higher prices at the checkout.
3. Seasonal Demand
Egg prices tend to rise during the holiday season due to increased demand for baking and festive meals.
Unfortunately, the combination of high demand and reduced supply due to bird flu created a perfect storm, further driving up costs.
The Ripple Effects of High Egg Prices
Impact on Consumers
The Consumer Price Index (CPI) shows that egg prices have risen by nearly 38% in the past year.
In California, the average price for a dozen eggs reached $8.97 in December 2022, up from $5.68 just a month earlier.
For families that rely on eggs as an affordable protein source, this has created a financial strain. Some consumers have even started skipping eggs in their diets altogether.
Impact on Businesses
Restaurants and bakeries, which use eggs extensively, are also feeling the pinch. Many have had to raise menu prices to offset the higher costs.
For example, a restaurant in San Luis Obispo increased the price of a two-egg dish from $15 to $17.
While some businesses have attempted to absorb the costs by sourcing cheaper eggs, others have no choice but to pass on the burden to customers.
Alternatives to Combat Rising Egg Prices
1. Raising Chickens at Home
With egg prices soaring, many people are exploring the idea of raising chickens. Backyard poultry farming has gained popularity, especially in rural and suburban areas.
Costs of Raising Chickens
Raising chickens isn’t without its expenses. The Hen House Collection estimates that maintaining a small flock of five hens costs about $69 per month. This includes feed, bedding, and other supplies.
While this is significantly higher than the average monthly expenditure of $8.37 on store-bought eggs, backyard flocks can produce more than two dozen eggs per month. Selling surplus eggs within the community can help offset the costs.
Benefits of Raising Chickens
- Supply Control: Backyard chicken owners don’t have to worry about supply chain disruptions or fluctuating prices.
- Freshness: Home-raised eggs are often fresher and tastier than store-bought ones.
- Sustainability: Raising chickens can reduce reliance on industrial farming practices.
However, raising chickens also comes with challenges, such as the risk of diseases, predators, and the time required for daily care.
2. Exploring Egg Alternatives
For those who find raising chickens impractical, reducing egg consumption or exploring substitutes can be an option. Many recipes can use alternatives like:
- Flaxseeds or Chia Seeds: When mixed with water, they create a gel-like consistency ideal for baking.
- Silken Tofu: Works well as a replacement in recipes like quiches and custards.
- Commercial Egg Substitutes: Brands like JUST Egg offer plant-based alternatives that mimic the texture and taste of eggs.
What’s Next for Egg Prices?
The future of egg prices remains uncertain. The USDA predicts that costs will continue to fluctuate due to persistent avian flu outbreaks and production challenges.
For 2025, price projections have already been adjusted upward, with estimates ranging from $1.90 to $2.95 per dozen, depending on the quarter.
While the worst of the bird flu outbreak may pass as farms repopulate their flocks, other factors like inflation, feed costs, and regulatory changes will likely keep prices elevated.