Dive Brief:
- Consumer egg prices last month increased to a record high even as bird flu outbreaks that have limited supply begin to fade.
- The average cost of large, grade A eggs was $6.23 per dozen in March, according to the Bureau of Labor Statistics' Consumer Price Index. That's a 5.9% jump from the previous month and a 60% increase over the same time last year.
- The egg supply is beginning to rebound as farms report fewer outbreaks of avian influenza. Bird flu devastated commercial operations in late 2024 and created significant shortages.
Dive Insight:
Consumer egg prices have hit record highs for three straight months, but that could be changing as supply recovers and wholesale costs drop.
Wholesale egg prices in markets including New York, California and the Midwest all declined as of April 4, according to a report from the USDA. Stocks of conventional and cage-free eggs have both increased, though supply of organic shell eggs slightly dipped.
Even as wholesale prices fall, it could take time for those savings to be passed on to consumers. The egg supply has improved to the point that grocers "are confident enough" to begin offering discounts, the USDA said, particularly as demand among consumers becomes muted.
"The supply situation at grocery outlets has greatly improved in recent weeks and consumers are once again seeing fully stocked shelves and enjoying a range of choices without purchase restrictions," the USDA said in its report.
Farms have rebuilt the egg supply after outbreaks of avian influenza intensified during the winter and wreaked havoc on flocks. Since Jan. 1, more than 30 million birds have been killed as part of the outbreak.
Detections on farms have begun to fall, with just one commercial operation reporting an outbreak so far in April. Farms reported 12 outbreaks last month, down from 85 in January. Bird flu detections tend to fall in the hotter months as heat is believed to limit the viability of the virus.
Although producers have begun to rebuild the egg supply, chicken flocks remain thin. Compared to the beginning of the year, the caged flock was down 12.5% as of March 1.
Egg supply shortages have led some in Congress to accuse producers of hiking prices to reap record profits. Cal-Maine, the largest egg supplier in the U.S., said it is cooperating with a Department of Justice investigation into the causes behind increased consumer prices for the popular commodity.
