Egg prices soar to record levels as bird flu ravages US laying flocks

US egg prices have skyrocketed to unprecedented levels, with wholesale costs reaching over US$8 per dozen as highly pathogenic avian influenza continues to devastate commercial laying flocks across multiple states.

According to the US Department of Agriculture's Chickens and Eggs report released Monday, the nation's egg-laying hen flock dropped to 363 million birds in January 2025, down 3.8 percent from a year ago and the lowest level since 2016.

USDA data showed that January egg production totaled 8.86 billion eggs, a 4.2-percent decrease from January 2024 and the lowest monthly production since the previous major outbreak of bird flu in 2016.

The USDA's Egg Markets Overview indicated that shell egg shortages, once limited to certain regions, now impact most major markets. The report notes that "spot market bids are routinely outpacing offers, often by as much as a factor of 10, and prices are setting records on a daily basis."

By February 21, prices had climbed even higher, with the USDA's Agricultural Marketing Service reporting wholesale prices for large white eggs delivered to retailers in New York at 8.47 dollars per dozen. In California, benchmark prices for large eggs reached 9.22 dollars per dozen.

The crisis stemmed from ongoing outbreaks of HPAI in commercial chicken flocks. The USDA's Egg Markets Overview report indicated that as of mid-February, 36 confirmed outbreaks in nine states had resulted in the loss of 26.8 million birds in 2025 alone.

Most of these losses – 19 million birds or 71 percent – occurred in conventional caged systems, with another 7.8 million (29 percent) in cage-free systems.

Those losses represent 10.4 percent of the conventional caged layer flock and 7.7 percent of the non-organic cage-free flock that existed at the beginning of 2025.

The impact was particularly severe in January, with the USDA reporting that approximately 18.8 million table egg layers were lost that month – the most in a single month since the current outbreak began in 2022.

Bernt Nelson, an American Farm Bureau Federation economist, estimated that 43 million birds were lost in January and February alone, representing 25 percent of all birds affected since the outbreak began in 2022.

Adding to the industry's challenges, the USDA fired several key employees working on the federal response to the avian flu outbreak.

The egg shortage is having significant ripple effects throughout the food industry. Waffle House was the first national restaurant chain to introduce a temporary surcharge earlier this month, charging an additional 50 cents per egg.

Meanwhile, Denny's, an American diner-style restaurant chain known for its 24/7 service, has begun adding egg surcharges at some of its more than 1,700 locations. Many grocery stores, including Trader Joe's, Costco and Sam's Club, have also implemented purchase limits to stretch existing supplies.

For consumers, the crisis means higher prices and potential availability issues. The USDA reported that grocers are limiting consumer purchases to stretch existing supplies, but this has "heightened consumer awareness of the egg shortage, leading to an increase in opportunity buying, which further reduces available supplies."