How Bird Flu And New Laws Are Affecting Egg Prices And Supply

Various eggs in a nest on straw bedding

Egg prices are soaring due to a combination of bird flu outbreaks and cage-free legislation, and experts warn this trend will continue.

Key Insights

  • Outbreaks of bird flu and new laws for cage-free eggs are causing a significant spike in egg prices.
  • Egg prices in Metro Detroit and nationwide continue to climb as local supply is disrupted.
  • The switch to cage-free systems is driving costs higher for producers and consumers alike.
  • Many stores face empty shelves as demand outpaces current supply.

Bird Flu’s Impact on Egg Supply

The avian flu, known as Highly Pathogenic Avian Influenza (HPAI), has affected over 134 million birds across the United States since January 2022. This outbreak has directly impacted more than 102.6 million egg-laying hens, resulting in significant supply shortages that sent egg prices soaring. Poultry farmers must cull entire flocks upon virus detection, exacerbating the industry’s woes as it takes approximately five months for a hen to mature enough to lay eggs.

This situation is expected to persist until flocks are rebuilt and production levels stabilize, a challenging task given the ongoing nature of the virus outbreaks. Without vaccines or medical treatments available, farms rely heavily on biosecurity practices to prevent the spread of HPAI.

Cage-Free Legislation’s Role in Rising Costs

State laws mandating cage-free production add an additional layer of complexity. For instance, Michigan recently passed a law requiring eggs to come from cage-free systems, which increased operational costs for producers who need to make infrastructure and land investments. As a result, prices at stores like Kroger in Royal Oak and Meijer on 8 Mile Road have noticeably risen, with some shelves nearly empty.

“I know that there have been some sourcing issues resulting in less than fully stocked grocery shelves here today,” said Tim Boring, director of the state’s Department of Agriculture and Rural Development.

Local shoppers have started to feel the pinch, and state representative Cam Cavitt is considering a revision of the new laws due to the economic strain. The law’s implementation was delayed until December 2024 to allow for adjustments, but the impacts are already unfolding.

Consumer Demand and Price Adjustments

Egg prices have surged nearly 37% over the past year, in stark contrast with a 2.5% rise in overall food prices. Despite higher costs, consumer demand for eggs remains strong, contributing further to escalating prices. Retailers are modifying pricing strategies to avoid running out of stock and leaving shelves empty, a testament to the volatile market dynamics currently in play. In fact, according to the U.S. Bureau of Labor Statistics, “The average cost of a dozen Grade A large eggs was $4.15 in December.”

A solution to stabilize the market seems complex and distant. Experts predict egg prices may rise another 20% by the year’s end, leaving both consumers and producers grasping for balance amid these challenging times.

Sources:

  1. https://www.axios.com/local/detroit/2025/01/15/michigan-new-cage-free-law-bird-flu-expensive-eggs
  2. https://www.nerdwallet.com/article/finance/why-are-eggs-so-expensive
  3. https://nypost.com/2025/01/19/business/egg-prices-may-rise-as-much-as-20-by-end-of-the-year-says-expert-heres-why/
  4. https://www.foxnews.com/food-drink/egg-prices-may-soon-rise-expert-why-how-much