Why Are Eggs So Expensive?

The price of eggs is in the news today—and no wonder.  A dozen white Grade A chicken eggs—not the more expensive kind laid by free-range-chickens—reached a shell-shocking price of just under $5.00.  Last year at this time, they cost half as much, and people with long memories might remember that as recently as 2022, you could easily buy a carton of eggs for $1.70.  If you have a REALLY long memory, you might recall that the same carton only definitively crossed the $1.00 price mark in late 2002.

What’s going on?  This is a classic example of supply and demand working its way into the marketplace.  Starting at the end of last year, an avian influenza plague roared through the commercial hen population, apparently starting with turkeys, then moving to dairy cows, then to chickens (and, alarmingly, some humans).  

Most of you know this, but the scale of the pandemic is shocking.  In December alone, some 23.2 million birds were killed to prevent the virus from spreading, taking their laying capacity permanently offline.  You may have noticed that the egg aisle in your local grocery store has been empty at times, and many outlets are placing limits on cartons purchased per shopping trip.

When dramatically lower supply meets consistent demand, prices always go up.  The situation may be temporary, but it will take time for egg producers to replace their lost hens.  In the meantime, there’s always breakfast cereal and oatmeal.

Sources:

https://fred.stlouisfed.org/data/APU0000708111

https://time.com/7221173/why-eggs-are-so-expensive-right-now/