The cost of eggs in the United States has more than doubled over the past year due to the supply chain difficulties caused by the coronavirus pandemic, such as labor and building expenses, as well as a severe outbreak of highly pathogenic avian influenza. Prior to the December holidays, when egg demand is at its peak, egg prices reached historic highs. Despite recent minor decreases, customers in the United States began the new year with considerably higher-than-average prices. In California, the most expensive market, buyers paid an average of $7.37 for a dozen Grade A big eggs.

According to recent data, the national average price for a dozen eggs was $3.59 in November, up from $1.72 the previous year. This puts a strain on consumer finances as well as the bottom lines of restaurants, bakeries, and other food manufacturers who rely largely on eggs. Grocery costs rose 12% in November.

However, egg prices have risen much more than other items, because egg farmers were particularly hard struck by avian flu. According to the Agriculture Department, the flu has killed more than 44 million egg-laying hens, accounting for 4 to 5% of total production.

In some regions, finding eggs on the shelves can be difficult. However, the overall egg supply is holding up because the total flock is only down about 5% from its regular size of roughly 320 million chickens. Farmers have been working hard to replace their flocks as soon as possible following the outbreak. We lost 10 million more egg-laying chickens in this outbreak than in the previous outbreak in 2015, said Maro Ibarburu, a business expert at Iowa State University’s Egg Industry Center

According to Purdue University agriculture economist Jayson Lusk, the avian flu pandemic is the primary driver of price rises. Unlike in previous years, the virus persisted over the summer and made a comeback last fall, infecting egg and poultry farms. Farmers are doing everything they can to minimize the spread, but the disease is easily spread by migrating wild birds. Food companies and restaurants are suffering since it is difficult to find a suitable egg substitute in their recipes.

According to the USDA, the 2015 outbreak was probably the most serious animal health event in U.S. history. The pandemic extended to 21 states, affecting over 50 million birds, the vast majority of whom were egg-laying hens. It increased prices not only for shelled eggs but also for liquid egg products, with prices more than doubling by midyear.

How efficiently avian flu is controlled will have a significant impact on customers’ ability to predict pricing trends in 2023. According to Michael Swanson, the senior agricultural economist at Wells Fargo. Egg prices will remain high in the immediate future. Swanson stated that the immediate prognosis is wildly optimistic but that prices will fall as producers ramp up production.