Egg Prices Reach Record Highs and May Climb Further
Egg prices have soared to an all-time high, and experts predict they could rise even more in the coming weeks.
Currently, consumers are paying an average of $4.95 per dozen for large Grade A eggs, according to recent government data. However, this remains significantly lower than the wholesale cost that grocery stores face, which reached $8.15 per dozen—the highest price recorded since 1985, as reported by commodity research firm Expana.
Why Are Grocery Stores Absorbing Costs?
Despite the sharp increase in wholesale prices, grocery retailers are choosing not to pass the full cost onto customers. Eggs are a kitchen staple, and supermarkets aim to keep them reasonably priced to ensure customer loyalty.
“Retailers are doing everything they can to maintain lower egg prices relative to their rising costs,” said Richard Volpe, associate professor in agribusiness at California Polytechnic State University. “They also recognize that keeping eggs accessible signals to shoppers that they can still find essential items at fair prices.”
This strategy highlights shifting consumer behaviors following recent grocery price hikes. With Easter approaching, a period of peak egg consumption, prices may continue their upward trend.
Milk and Eggs: Classic Loss Leaders
Essential items like milk and eggs have historically been considered “loss leaders”—products priced aggressively low to attract customers into stores.
“They’re perishable, widely used, and require refrigeration,” Volpe explained. “This makes them strategic items for retailers, who often place them at the back of the store, encouraging shoppers to pass by other products before reaching them.”
However, the traditional pricing strategy for eggs has become more challenging as costs have surged.
The Impact of Avian Flu on Prices
One of the biggest factors driving the price surge is a severe avian flu outbreak, which has led to a significant reduction in egg-laying hen populations across the U.S. When a single bird in a flock is infected, neighboring hens must also be culled to prevent further spread of the disease.
Since the outbreak began in February 2022, nearly 158 million birds have been affected, including a large number of laying hens. The resulting supply shortage has pushed prices to unprecedented levels, surpassing even the price spike seen in 2020, when egg costs doubled, according to Kevin Bergquist, sector manager at the Wells Fargo Agri-Food Institute.
With continued supply challenges and growing demand, consumers should prepare for further price fluctuations in the coming months
