Egg prices have risen 70% in the last year – and here’s why

Grocery costs have skyrocketed over the past year, but nothing compares to egg prices, which rose 70.1%, according to the latest Bureau of Labor Statistics data.

“What used to cost $40 for a box of 120 eggs, now we pay over $100,” says Julia Hume, who runs a 24-hour New York City deli that has been in her family for almost 30 years.

If she gets cracked eggs in batches from wholesalers, she’ll ask for a loan, even if it’s just one or two eggs: “I know it sounds a little crazy, but that’s how I do it. I can’t lose anymore.”

To offset inflation, the deli added a 50-cent surcharge to credit card purchases and raised the prices of many items in the store, including boxes of eggs. However, they haven’t raised the price of egg sandwiches yet.

“We have to make it accessible. We don’t want to lose our customers or anything else we’ve lost because we’re already feeling the consequences. [costs] increases,” says Hume.

Why have eggs become so expensive?

Egg prices have been affected by the same supply chain disruptions and labor shortages, which have increased the cost of food by 10.1% overall over the past year, as measured by the consumer price index, a key indicator of inflation. Egg production has also been hit hard by the bird flu outbreak, which killed 50.54 million birds in the US in 2022.

The avian influenza virus can be transmitted by wild birds mixing with poultry flocks and through contaminated clothing and equipment. The loss of livestock has exacerbated the rise in egg prices, which have nearly tripled in some states over the past year.

In California, for example, the retail price of a dozen large eggs is now $7.37, up from $2.35 a year ago, according to a USDA report released last week.

“I know what it takes to produce eggs, but I don’t make that much money,” says Sam Miller, owner of the Cedar Ridge Egg Farm, which has about 25,000 chicks. “I’m making enough to stay in business.”

Because of the rising cost of producing eggs, Miller raised the price for a box of five dozen eggs from $45 to $60. But the loss of herds, as well as increased operating costs, including labor and transport fuel, have eaten into the increase in revenue. In addition, chicken feed costs have increased by about $14,000 a month, he said.

“Since the start of the Ukrainian-Russian war, we have seen very high production costs for grain-related eggs,” says Brian Moskogiuri, global trade strategist at egg company Eggs Unlimited. “Corn and soybeans are key ingredients for egg production because they are the feed that laying hens eat.”

The cost of preventing avian influenza is also taking its toll.

“There are huge costs associated with disinfecting and washing trucks and trying to scare away wild birds,” says Moskogiuri. “It’s like a natural disaster that was unavoidable and there really isn’t a silver bullet to stop it.”

In the meantime, the outbreak has subsided somewhat, leading to lower prices. As of mid-February 2023, wholesale egg prices have fallen by more than 50% since December. While farms have taken steps to limit the spread of bird flu, experts say the virus could flare up again in the spring as wild birds migrate across the US.

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