Egg prices have shot up and the main culprit for it is highly pathogenic avian influenza.
According to the U.S. Bureau of Labor Statistics Consumer Price Index, egg prices have increased by around 38% in the last year nationwide. The average cost of one dozen was up to $3.65 in November of last year versus $3.37 in October and $2.14 in November 2023.
The USDA Agricultural Marketing Service says the wholesale price for a carton of large eggs on the New York market rose to $6.06 per dozen. The Midwest region wasn't too far behind at $5.75. In California, the prices for eggs were as high as $8.97 as of January 3.
Texas A&M professor David Anderson said highly pathogenic avian influenza (HPAI) has been deadly in the poultry industry.
"When it hits a farm it wipes out all the hens and then we lose the eggs," Anderson said.
According to USDA data, the U.S. had 310 million egg-laying hens as of December 2024, down from 319 million from December 2023.
The bird flu is causing a supply shortage and therefore driving egg prices up at the grocery store. Higher prices signal to producers to produce more, but consumers will most likely buy fewer eggs too, working to eventually bring prices down.
"Prices are really the market working to ration those supplies that are out there," said Anderson. "We tend to have a growing demand for eggs and it just takes time and this is where we kind of hit the biological nature of production."
Suzanne and Mitchell Walker own Laura's Cheesecake based in Mount Pleasant, Texas. They ship their cheesecakes nationwide, with each one requiring six eggs. They're trying to keep customers coming back and not passing the higher egg prices on to them in their products.
"We're committed to our customers that have been loyal to us for years and so it's been a challenge to keep our cheesecakes priced at a margin that's profitable for us but reasonable enough for our customers to purchase," said Suzanne Walker.
The two have run Laura's Cheesecake for four years now. The holiday season is their busy season and this is the third year for them dealing with a bird flu which has made operations even more challenging.
"It's dramatically affected the prices of eggs where it's gone up significantly for the last quarter and the first quarter of the year," she said.
According to Mitchell Walker, prices for their main ingredients have gone up over 25% since this time last year. When the two bought the business a few years back, cases of eggs were around $45. This week, they bought a low price case for $110.
"There's nothing we can do," he said. "We set our prices in August and September and we look ahead and try to lock in the prices of the eggs with a contract."
Adding the bird flu on top of inflation has been a bad and disruptive recipe for businesses and consumers all across the country. The Walkers remain hopeful for growth in their business and a decrease in costs in 2025.