February 22, 2025

Why Egg Prices Are So High — and Will Likely Get Higher

Egg prices have been fluctuating significantly in recent years, often leaving consumers wondering why their grocery bills keep climbing. While prices have slightly stabilized at times, various economic and environmental factors indicate that the cost of eggs is unlikely to drop significantly anytime soon. From supply chain issues to bird flu outbreaks and increased feed costs, the price of eggs is driven by multiple interwoven challenges that make them more expensive to produce and distribute.

The Impact of Avian Influenza
One of the most significant reasons behind rising egg prices is the outbreak of highly pathogenic avian influenza (HPAI), commonly known as bird flu. This disease has devastated poultry farms across the United States, leading to the loss of millions of egg-laying hens. When flocks are infected, entire populations must be culled to prevent further spread, which dramatically reduces the supply of eggs. With fewer hens producing eggs, supply dips while demand remains steady or even increases, causing prices to rise.

The bird flu crisis is not a short-term issue, either. Even when farmers restock their flocks, it takes months before new hens start laying eggs at full capacity. Additionally, ongoing outbreaks mean continued disruptions, keeping supplies tight and prices elevated.

Increased Feed and Production Costs
Another key driver of high egg prices is the rising cost of chicken feed. The primary feed ingredients for hens—corn and soybeans—have seen significant price increases due to global supply chain disruptions, extreme weather conditions, and geopolitical tensions such as the war in Ukraine. Since feed makes up a substantial portion of the overall cost of raising hens, any increase in feed prices is passed down to consumers through higher egg prices.

Beyond feed costs, other production expenses have also risen. Labor shortages in the agricultural sector, increased transportation costs due to fuel price hikes, and higher electricity costs for maintaining poultry facilities all contribute to making egg production more expensive. These costs, in turn, are reflected in the final price of eggs at the grocery store.
Supply Chain Disruptions
The supply chain disruptions that began during the COVID-19 pandemic continue to affect various industries, including egg production. Delays in transportation, shortages of packaging materials, and labor issues have all made it more challenging and expensive to get eggs from farms to store shelves. Any disruptions in the supply chain can create bottlenecks that lead to temporary shortages, causing prices to spike.

Increased Consumer Demand
Interestingly, demand for eggs has remained strong despite rising prices. Eggs are a versatile and relatively affordable source of protein compared to meat, making them a staple in many households. Additionally, more consumers are baking at home, preparing more meals from scratch, and seeking protein-rich diets, all of which contribute to higher demand.

During the holiday season, demand for eggs typically surges as people bake more and prepare elaborate meals, further straining supply and pushing prices even higher. As a result, seasonal trends also play a role in the cost fluctuations of eggs throughout the year.

Will Egg Prices Drop Anytime Soon?
Unfortunately, many of the factors driving high egg prices are unlikely to disappear overnight. Bird flu remains an ongoing threat, feed costs are still high, and supply chain issues persist. While prices may stabilize temporarily, they are unlikely to return to pre-pandemic levels anytime soon.

Additionally, as regulations around cage-free egg production increase, costs could rise even further. Many states are implementing new laws requiring egg producers to provide more humane living conditions for hens, which, while beneficial for animal welfare, also raises production costs.

Egg prices have surged due to a combination of bird flu outbreaks, rising feed and production costs, supply chain disruptions, and increased consumer demand. These factors create a perfect storm that makes eggs more expensive and keeps prices from dropping significantly in the near future. While consumers may see occasional price reductions, the long-term trend suggests that eggs will likely remain costly for the foreseeable future.