Price of eggs reached a record high in January

One dozen eggs and a black sex link pullet, now worth an arm and a leg. Photo by Shannon DeWitt
The price of a dozen eggs reached a record high in January 2025, according to the United States Department of Agriculture (USDA). This followed a significant price increase in 2024, when the average cost of a dozen Grade A large eggs rose by 37 percent. In January 2025 alone, egg prices jumped by $1.28 per dozen, reaching $7.09 per dozen—an all-time high (Trading Economics, 2025). The USDA projects that egg prices will rise an additional 20.3 percent in 2025. In contrast, overall food prices increased by 2.5 percent in 2024 and are expected to rise by another 2.2 percent in 2025 (USDA, 2025).
This price surge is being felt locally. For example, in Maynardville, the largest grocery store, Food City, is expected to sell a dozen Food Club brand eggs for $7.99 by the end of February 2025.
Understanding the poultry industry
To understand the factors driving egg shortages and rising prices, it helps to know some basics about the poultry industry. Commercial chicken flocks fall into two main categories: layers and broilers.
• Layers are bred for egg production. These birds are lighter and more efficient at converting feed into eggs over an extended period. Breeds like White Leghorns and Rhode Island Reds typically begin laying eggs at around 18–22 weeks of age and produce 200–300 eggs per year (Oklahoma State Extension).
• Broilers are bred for meat production. These birds are stockier and grow rapidly, reaching an optimal slaughter weight of about five pounds in just six weeks.
This article focuses on layer chickens, which produce eggs for consumption—commonly referred to as table eggs.
The impact of avian influenza on egg prices
The primary factor driving higher egg prices is the ongoing outbreak of highly pathogenic avian influenza (HPAI) H5N1. This virus has led to the loss of millions of table egg-laying hens, reducing egg supply from both conventional caged and cage-free systems. Given the current outbreak, egg prices are expected to remain high.
Recent HPAI outbreaks at large table egg farms have significantly reduced the number of egg-laying hens, creating a shortage and driving up prices. Although farmers and egg suppliers are working to replace lost flocks, rebuilding takes time.
• It takes three weeks for a fertilized egg to hatch into a chick.
• That chick then needs 20–22 weeks to mature and start laying eggs.
• Even once a hen starts laying, her initial eggs are smaller, and it takes a few weeks before she consistently produces Grade A large eggs.
In total, it takes approximately six months to raise new laying hens. This means hens lost in January 2025 cannot be replaced before July or August 2025 at the earliest. Given that the HPAI outbreak shows no signs of stopping, continued losses in poultry flocks—including table egg layers, turkeys, broilers and backyard poultry—will likely keep prices elevated for the foreseeable future.
Other factors affecting egg prices
While avian influenza is the primary driver of high egg prices, other factors also contribute:
1. Inflation: Since 2023, the cost of nearly everything has been rising for American consumers, and eggs are no exception.
2. Supply Chain Disruptions: Lingering effects from the COVID-19 pandemic continue to impact the egg industry, including transportation and production challenges.
3. Labor Shortages: The table egg industry has struggled to find workers, which affects production capacity.
4. Regulations in California (Proposition 12): Passed in 2018, this law requires that all eggs sold in California come from cage-free hens. Cage-free production requires more labor and space, increasing overall production costs and, ultimately, egg prices in California.
Summary
Egg prices are expected to remain high throughout 2025 and possibly beyond. While several factors contribute to these rising costs, the avian influenza outbreak is the most significant. Farmers and egg producers are working hard to replace lost flocks, but since it takes about six months for new hens to start laying eggs, shortages are likely to persist.
As long as HPAI continues to affect poultry flocks, the industry will struggle to keep up with demand, keeping prices elevated. Moving forward, biosecurity remains the best defense against avian influenza, helping to protect flocks and stabilize the egg supply.
Source: This article is based on the publication “Avian Influenza Likely to Send High Egg Prices Even Higher Throughout 2025” by Tabler, Moon, Christensen, Maharhan, and Thornton from the Department of Animal Science, University of Tennessee (February 2025).
- Log in to post comments