Why are eggs so expensive? A comprehensive breakdown

Have you noticed a dent in your wallet from your breakfast omelet lately? You're not imagining things. Egg prices have been on a rollercoaster, soaring as high as $5.43 per dozen on average for the U.S. in late 2022. Prices eventually came down, but they’re on the rise again as of 2024.

And it's not just your regular eggs we're talking about. The price difference between organic, free-range, and conventional eggs widens, adding another layer to this story.

Why are your eggs getting more expensive?

Egg prices have seen some pretty extreme highs and lows in the early 20s. But why? And will this trend continue? Let's crack this egg of a mystery open.

Bird flu outbreaks

First up, our farmers are dealing with a pesky problem - bird flu. This nasty bug has caused the price of a dozen Grade A large eggs to rise 8.9% from November to December in late 2023.

Falling prices and sudden hikes

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Even though egg prices shot up recently, they're still lower than they were in December 2022. In fact, egg prices more than doubled at the start of 2022 until peaking in January 2023. Then, prices fell steadily until autumn, but they're still not back to pre-pandemic levels.

The main culprit: H5N1

You might be thinking, "It's gotta be the pandemic or inflation causing all this, right?" Well, not quite. The main troublemaker is H5N1, a highly contagious and deadly strain of bird flu. This nearly decade-long pandemic reduces the egg supply when an outsize number of hens must be removed from circulation due to bird flu. Yet when human demand for eggs stays the same, voila: You get higher prices.

The scale of the outbreak

More than 81 million birds have been affected in the U.S. due to the outbreak as of January 2024. So, there you have it - that's why we're facing an egg shortage and why your breakfast might cost a bit more sometimes.

Not all eggs are created (and sold) equally

Some eggs are priced differently, depending on factors such as their production methods. Free-range or organic eggs, for instance, tend to be more expensive compared to conventionally produced eggs. The higher price reflects the additional care and resources required to produce these eggs in a more sustainable and ethical manner. While they may cost more, many consumers opt for these eggs for their perceived higher quality and environmental benefits.

FAQs about the egg price hike

Q: How does the cost of chicken feed impact egg prices?

A: Chicken feed, primarily made up of corn and soybeans, directly impacts the cost of producing eggs. If the cost of these crops increases, the cost of feeding hens goes up, which in turn raises egg prices. But chicken feed prices have not been linked to any recent egg price hikes related to bird flu. 

Q: What happens to egg prices during an outbreak of disease among hens?

A: Disease outbreaks can significantly reduce the number of laying hens, leading to a drop in egg supply and a corresponding increase in egg prices.

Q: Why do egg prices fluctuate throughout the year?

A: Egg prices can fluctuate due to seasonal changes in demand, weather events that affect production, and feed costs.

Q: How does the demand for eggs affect their price?

A: When demand for eggs increases, and supply remains constant, prices tend to rise. Conversely, prices tend to fall if demand decreases and supply remains constant.

Q: Are organic eggs more expensive than regular ones?

A: Generally, yes. Organic eggs are usually more expensive because they cost more to produce.

Q: How does the cost of transportation factor into egg prices?

A: Transportation costs are a part of the total cost of getting eggs from the farm to the store. 

Q: Are eggs from free-range hens more expensive?

A: Free-range eggs can cost more to produce because of the additional space and care required for free-range hens.

Q: Can egg prices vary by region?

A: Factors like local demand, production costs, and transportation costs can all cause egg prices to vary from one region to another.

Q: Are brown eggs more expensive than white ones?

A: Sometimes, but not always. The breed of the hen determines the color of an egg and doesn't affect its nutritional value. However, according to Consumer Reports, brown eggs can cost more than white eggs because the type of hen laying them is often larger and presumably more expensive to feed and house. 

Q: What is the average price of a dozen eggs?

A: The average price of a dozen eggs can vary widely depending on the region, the type of egg (e.g., organic, free-range), and other factors.

Several complex factors influence the price of eggs. While the 2022-2023 egg price fluctuations were primarily due to avian flu, many other economic and environmental shifts can affect consumer goods, including eggs. 

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