Egg prices have been steadily rising for months, with the average price of a dozen Grade A large eggs reaching $3 in February, up from around $2 in the fall. This increase in price is due to a recent outbreak of bird flu at poultry farms across the country. Cal-Maine Foods, America’s largest egg producer, recently culled about 1.6 million hens and 337,000 young chickens at one of its facilities in Texas after some tested positive for “highly pathogenic avian influenza.” This has caused production at the facility to temporarily cease, and Cal-Maine has not provided information on how this outbreak will impact egg prices.
Multiple farms across the country have also been affected by bird flu, with cases reported in Michigan, Texas, Kansas, and Minnesota. Despite these outbreaks, officials have stated that the risk to the public is minimal and that agencies will continue to provide updated guidance as needed. If egg producers are unable to keep up with demand due to culling animals, prices may continue to rise. Companies like Cal-Maine Foods are working to secure production from other facilities to minimize disruption to customers, but it is unclear if this will be enough to prevent further price hikes.
Last year, egg prices reached a record after a widespread bird flu outbreak ravaged farms, causing the average price to peak at $4.82 in January 2023. While prices have since decreased, they are still at their highest level since April 2023. Cal-Maine Foods reported a significant increase in revenue and profit following last year’s outbreak, with the recent culling representing about 3.6% of the company’s total flock as of early March. The company controls about 20% of the market, and the long-term impact of the current bird flu outbreak on egg prices remains uncertain.
As the avian influenza virus continues to pose a threat to poultry farms, the extent of possible future outbreaks, especially during migration seasons, cannot be predicted. The presence of the virus in the wild bird population adds to the challenge of containing the spread and protecting poultry farms. With companies like Cal-Maine Foods taking steps to secure production from other facilities, efforts are being made to minimize disruptions in the supply chain and prevent further increases in egg prices. However, the ultimate impact of the bird flu outbreak on egg prices and availability remains to be seen.
Consumers may start to see the effects of the recent bird flu outbreaks reflected in higher egg prices at grocery stores and restaurants. While companies work to mitigate disruptions in production and supply, the ongoing presence of the virus in the wild bird population poses a continued risk to poultry farms across the country. State and national agencies are monitoring the situation and providing guidance to the industry to prevent the further spread of avian influenza. The long-term impact of these outbreaks on egg prices and availability will depend on the ability of producers to maintain production levels and prevent future outbreaks.