Wholesale egg prices have surged to record highs, surpassing $8 per dozen, as the ongoing bird flu outbreak devastates the U.S. egg supply, according to data from Expana, which tracks agricultural commodity prices. The spike, which has far exceeded previous highs, is expected to drive retail prices higher in the coming weeks, adding to inflationary pressures for consumers.
"The previous all-time high was late December 2022 heading into Christmas, when we touched $5.46 per dozen," said Ryan Hojnowski, a market reporter at Expana. "Of course, we have blown way past that this time."
The sharp increase is attributed to the widespread outbreak of highly pathogenic avian influenza (HPAI), which has led to the culling of millions of egg-laying hens. More than 40 million chickens died in 2024, including 22 million in the final quarter alone, forcing retailers to adjust prices and implement purchase limits.
At the consumer level, retail egg prices averaged $4.15 per dozen in December, according to the U.S. Bureau of Labor Statistics (BLS), marking a 65% increase from a year earlier. Prices remain below the January 2023 peak of $4.82 per dozen but are on track to reach new highs if supply constraints persist.
Major retailers, including Costco and Trader Joe's, have imposed purchase limits, while restaurant chains such as Waffle House have raised menu prices, adding a surcharge of 50 cents per egg. Local diners have followed suit, passing on higher costs to customers as wholesale prices continue to rise.
Industry analysts warn that the effects of the outbreak will not subside quickly, as the virus has continued to spread into 2025. The U.S. Department of Agriculture (USDA) reports that over 22 million egg-laying chickens have died so far this year, depleting inventories to nearly 16% below the five-year average.
Wholesale prices "are triple, quadruple where we were a year ago," said Amy Smith, vice president at Advanced Economic Solutions, an agricultural consulting firm. The run-up is "very significant."
Retail price hikes are expected to vary by grocery chain, with national retailers such as Walmart and Aldi having greater flexibility to absorb higher costs through fixed-price contracts and stronger margins on other products. Smaller independent grocers, however, are likely to pass on increases to consumers more quickly.
Despite the massive impact on the egg industry, broiler chickens-those raised for meat-have not seen the same level of disruption. Chickens raised for meat are younger and spend less time on farms, reducing their exposure to avian flu. While 7.5 million broilers have died from the disease since October, the impact on meat prices has been relatively modest compared to eggs.
"These two production systems are separate systems. Avian influenza has really hit the egg laying farms much harder than our broiler farms," said Nancy Glazier, a livestock specialist with Cornell Cooperative Extension. "Egg laying farms tend to be in the major flyways so there is more risk from migratory birds."
The soaring egg prices have also drawn political scrutiny, with lawmakers and industry groups calling for a stronger federal response to contain the outbreak. While President Donald Trump has promised to bring down grocery prices, the crisis has underscored the challenges of managing agricultural inflation.
White House Press Secretary Karoline Leavitt blamed the Biden administration for mass cullings that reduced supply, but industry experts say the USDA's response-requiring entire flocks to be destroyed to contain outbreaks-has remained consistent across administrations.
"There is nothing Biden could have done to stop the bird flu. There is nothing President Trump could have done to stop the bird flu-it's neither of their faults," said egg producer Frank Hilliker of Hilliker Farms in California.
Industry leaders, including the American Egg Board, are advocating for expanded federal funding for surveillance and research to combat the spread of avian flu. Some experts argue that vaccinating commercial flocks could help prevent future outbreaks, though such measures have been controversial due to trade implications.
"Other countries will not allow poultry from that country to be imported. And so that causes some tension," said Bernt Nelson, an economist at the American Farm Bureau Federation. "and that's really the biggest reason why we don't see a lot of any countries in general using these vaccines."
As the outbreak continues to spread beyond poultry farms, concerns are growing over its impact on human health. In January, a person in Louisiana became the first U.S. resident to die from bird flu. Additionally, dairy cattle in Nevada tested positive for a new variant associated with severe infections in humans, raising alarms about broader transmission risks.
