Egg prices in the U.S. have risen 60% over the past year, due in large part to the bird flu ravaging commercial flocks. Here's a look at why experts see the prices continuing to climb.
The Details: The average price for a dozen large, grade-A eggs rose 60% over the past year, reaching $4.15 in December, according to data from the Bureau of Labor Statistics. The USDA predicts egg prices will rise another 45% in 2025 due to a strain of bird flu known as H5N1 that killed 13.2 million commercial egg-laying hens in December.
On top of the record-high prices, consumers are also facing egg shortages and purchase limits at major retailers like Costco Wholesale Corp.
Data from the U.S. Department of Agriculture shows that a record number of more than 20 million egg-laying chickens died in the last quarter due to bird flu.
In an attempt to contain the virus, farmers are compensated for chickens and eggs that are destroyed through a USDA program which said it had paid out $1.25 billion to farmers since the outbreak started in 2022, according to a CBS News report.
In fact, egg producers are reporting record profits during the latest bird flu outbreak. Cal-Maine Foods Inc.
The company attributed its high revenue in part to restricted supply resulting from bird flu outbreaks. Cal-Maine Foods stock has gained more than 75% over the past six months.
Telsey Advisory Group analyst Sarang Vora initiated coverage this week on Vital Farms, Inc.
This week, Rose Acre Farms, the second-largest egg producer in the U.S., confirmed its chickens had tested positive for bird flu, likely extending the period of high egg prices and shortages.
