Market Data
Egg Crisis: A Growing Concern
The current egg crisis in the United States is a multifaceted issue that has been exacerbated by the ongoing bird flu outbreak. Not only have egg prices soared, but the availability of eggs has become increasingly scarce. This shortage is causing significant disruptions for both consumers and businesses alike. For instance, Jose Castillo, co-owner of Norma’s Sweets Bakery in New Orleans, is struggling to keep his Cuban sandwiches and king cakes affordable. "Oh it’s hurting man. It’s crazy how expensive eggs are," he laments, explaining that the cost of a case of eggs has jumped from around $35-$40 to over $118-$120. The shortage is so severe that Castillo and many others are having to adapt to new realities, including checking multiple stores or seeking local farmers to find the basic ingredient.
Hard to Find: Empty Shelves and Desperate Searches
Empty egg shelves are becoming a common sight in grocery stores across the country. The bird flu, which began in 2022, has led to the slaughter of nearly 158 million birds, primarily egg-laying chickens. This massive culling has significantly reduced egg supplies, driving prices higher. While the industry can usually manage the loss of a few million birds, the recent surge in bird flu cases has led to the slaughter of millions of birds in quick succession. For example, last month saw the culling of over 23 million birds, following 18 million in December. The process of restocking farms is complex and time-consuming; it takes at least a month or two to replace the birds, as the carcasses must be disposed of and the barns sanitized. This lag in supply exacerbates the shortage, making it difficult for consumers to find eggs, even when they are willing to pay premium prices.
Limiting Purchases: Stores’ Response to the Crisis
To combat the egg shortage, many grocery stores have implemented purchase limits. Trader Joe’s, for instance, has capped egg purchases to one carton per customer each day, a limit that applies to all of its locations nationwide. The company hopes that these limits will help ensure that more customers can access eggs when they visit. Other major retailers, including Costco, Whole Foods, Kroger, and Aldi, have also reported varying limits on egg purchases, though not all of these limits are nationwide. For example, Kroger confirmed that while there are no enterprise-wide limits, some of its regional divisions and store banners are asking customers to cap egg purchases to two dozen per trip. Walmart, another retail giant, has not imposed national limits but has restricted bulkier purchases of 60-count cartons to two per purchase. The company is working closely with suppliers to meet customer demand while keeping prices as low as possible.
An Expensive Option: The Impact on Consumers
The financial impact of the egg shortage is significant. The average price per dozen eggs nationwide hit $4.15 in December, more than double the price in the summer of 2023. The Agriculture Department predicts that prices will soar another 20% this year, especially as Easter approaches, when eggs are in high demand for holiday dishes and traditional Easter egg hunts. The Bureau of Labor Statistics is expected to publish new numbers soon, and while egg prices are almost certain to be even higher, they are still below the record $4.82 set in January 2023. However, these are average prices. In some parts of the country, consumers are paying more than $10 per dozen, particularly for organic or cage-free eggs. The cost is not limited to grocery stores; restaurants are also feeling the pinch, with some, like Waffle House, adding a 50-cent surcharge per egg to their menus.
Cracking the Case: Theft and Black Markets
The high cost of eggs has even led to theft. Seattle police are investigating the theft of over 500 eggs from a restaurant last week. Security camera footage showed two men entering a refrigerated shed at Luna Park Cafe in West Seattle, removing boxes containing 540 eggs and other breakfast items, and loading them into a van. The stolen items were worth about $780. Similarly, earlier this month, 100,000 eggs were reported stolen from the back of a trailer in Pennsylvania. The eggs, belonging to Pete & Gerry’s Organics, were taken from a distribution trailer in Antrim Township and are worth about $40,000. These thefts highlight the desperation and the value placed on eggs in the current market, as the yolks are now being treated as if they were made of gold.
Looking Forward: A Complex Future
The egg crisis is far from over, and the future remains uncertain. The bird flu continues to mutate and infect more birds, other animals, and even some people. The ongoing culling of flocks and the lengthy process of restocking farms mean that the shortage and high prices are likely to persist. For businesses like Norma’s Sweets Bakery, the challenge is to find ways to keep their products affordable and available to customers. For consumers, it means adapting to new shopping habits, including checking multiple stores and exploring alternative sources. As the crisis continues, the hope is that the industry and government will find effective ways to manage the bird flu and stabilize the egg market, ensuring that this essential ingredient remains accessible and affordable for all.
