EXPLAINER - US egg crisis deepens as bird flu, supply chain woes drive prices up

ISTANBUL

The US is currently experiencing a major egg shortage, driven primarily by a severe outbreak of avian influenza, commonly known as bird flu, along with disruptions in supply chains.

The widespread outbreak has resulted in the culling of millions of egg-laying hens, significantly reducing supply and leading to a sharp rise in prices.

In January 2025, egg prices surged by 15.2% compared to the previous month, marking the most significant monthly increase since June 2015. Over the past year, prices have skyrocketed by 53%. Meanwhile, consumer price index data from the Labor Department shows a staggering 230% increase in egg prices over the past five years.

Causes of crisis

Since 2022, the US has been dealing with the H5N1 strain of bird flu, which has impacted over 150 million birds, making it one of the costliest animal disease outbreaks in the country’s history.

The loss of a substantial portion of the egg-laying population has created significant supply chain disruptions. Replacing culled flocks takes months, as young hens must reach maturity before they can start laying eggs. This delay has prolonged shortages and driven up prices.

Additionally, several states have introduced regulations requiring cage-free environments for egg-laying hens, aimed at improving animal welfare. However, these new requirements have intensified the crisis, as producers struggle to comply with the updated standards amid already constrained supply. In response, Nevada Governor Joe Lombardo temporarily suspended the state’s cage-free egg regulations, allowing the sale of Grade B eggs to help alleviate shortages.

Record-high egg prices

As of February 2025, the average price for a dozen eggs in the US has reached an all-time high of $4.95, surpassing the previous record of $4.82 in 2023. Some retailers are charging as much as $10 per dozen. According to the USDA’s report, the average price per dozen stood at $7.34 as of Feb. 7.

Certain states, including Hawaii and Florida, have reported the highest prices, with averages of $9.73 and $6.36 per dozen, respectively.

In response, major grocery chains have introduced purchase limits to manage supply and prevent disputes among customers.

Unintended consequences: Smuggling, theft

The crisis has led to unexpected consequences, including a rise in egg smuggling across the US-Mexico border.

With eggs significantly cheaper in Mexico, some consumers have attempted to bring them into the US, prompting Customs and Border Protection (CBP) to report a 29% increase in egg confiscations between October 2024 and February 2025 compared to the previous year.

Theft has also become a growing concern. On Feb. 1, 2025, thieves stole over 100,000 organic eggs, valued at $40,000, from a farm in Pennsylvania.

Meanwhile, popular restaurant chain Waffle House has introduced a $0.50 surcharge on egg orders to offset rising costs. 


Policy adjustments, imports to ease shortage

In an effort to mitigate the crisis, some states are reconsidering their regulatory policies. Nevada’s temporary suspension of cage-free mandates is one such measure aimed at boosting supply.

Additionally, the US has increased egg imports to stabilize the market. With domestic production struggling, imports surged by 38% in December 2024 compared to the previous month.

The US has also resumed egg imports from Türkiye, which last supplied eggs to the country in January 2023. Türkiye has agreed to provide approximately 15,000 tons of eggs to the US by June 2025 to help address the shortage.

Prices expected to remain high

The USDA has warned that egg prices could increase by an additional 20% throughout 2025 as the impact of the avian influenza outbreak continues to affect the industry.

While various measures are being taken to stabilize the market, US consumers and businesses are expected to face persistently high prices and limited availability in the months ahead.