Understanding the Rising Egg Prices Linked to Bird Flu's Impact

Understanding Rising Egg Prices

Rising egg prices have been significantly impacted by bird flu's effects on the supply chain. The latest reports from the Bureau of Labor Statistics reveal that egg prices surged by 28.1% within the past year, with the average price for a dozen large eggs reaching $3.20. This price spike can be traced back to the outbreak of highly pathogenic avian influenza (HPAI), also known as bird flu.

Bird Flu's Role in Egg Production

The bird flu outbreak has devastated numerous chicken farms across the country. Since January 2022, over 100 million birds have been affected in 48 states, according to data from the Centers for Disease Control and Prevention (CDC). Phil Lempert, a grocery industry analyst, stated, “Bird flu is the number one reason for higher prices, absolutely.”

1. Total output of eggs has dramatically decreased.
2. High demand continues while supply dwindles.
3. Small housing spaces for chickens exacerbate the contagion effect.

Amy Hagerman, an associate professor of agricultural economics at Oklahoma State University, emphasized that large table egg-layer facilities are particularly vulnerable. A single facility can experience significant losses, affecting millions of birds.

Inflationary Pressures and Market Volatility

However, bird flu is not the sole reason behind rising egg prices. Emily Metz, the president of the American Egg Board, pointed out that inflationary pressures play a crucial role. With elevated fuel prices, labor costs, and packaging expenses, egg farmers find themselves as price takers, not makers. Metz noted, “The volatility we’re seeing reflects a number of factors that are completely outside the control of the egg farmer.”