USDA predicts 20% rise in egg prices due to avian flu outbreak. Prices could break more records in 2025.

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Consumers across the United States have been shell-shocked by empty grocery store shelves and the skyrocketing cost of eggs. Unfortunately, the U.S. Department of Agriculture (USDA) has indicated that these high prices are unlikely to come down anytime soon. A worsening avian influenza outbreak has forced farmers to cull millions of birds, exacerbating the situation.

Currently, egg prices are hovering near all-time highs. In December, the average cost of a dozen Grade A large eggs was $4.15, according to the Bureau of Labor Statistics. This represents a 37% increase from the previous year, although it is slightly lower than the record $4.82 reached in January 2023.

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The USDA predicts that egg prices could rise even higher this year, with consumer costs expected to increase by 20.3% in 2025. This is despite moderating price growth in other food categories, where costs are rising below the historical average.

The avian influenza outbreak, which began in 2022, has now killed more than 145 million birds in the U.S. Producers have reported a significant rise in infections over the past two months, with roughly 33 million birds affected in December and January. A string of positive detections this month has further reduced the conventional egg-laying flock by 3.7%.

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These staggering losses have led to supply shortages, with the monthly volume of frozen eggs in storage recently reaching the lowest level in nearly three years, according to the USDA. The reduced supply has driven up consumer prices considerably and has also created a windfall for some of the country’s largest egg producers.

In response, grocery stores are beginning to limit consumer purchases to preserve supply and prevent panic-buying. They have also ended promotional activity, holding prices at “record or near-record highs” to keep demand lower, according to the USDA.

Sources:
https://www.grocerydive.com/news/egg-prices-increase-record-bird-flu/738528/

https://www.foxbusiness.com/lifestyle/egg-prices-arent-coming-down-anytime-soon-experts-say

https://www.tradingeconomics.com/commodity/eggs-us

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

https://tradingeconomics.com/commodity/eggs-us

https://www.fastcompany.com/91268248/egg-price-tracker-today-cost-rising-2025


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