Date: 2025-05-01 Page is: DBtxt003.php txt00027858
CONSUMER PRICES
FOOD (EGGS)
Why eggs are selling for over $9 a dozen in some places—and when prices are expected to drop
FOOD (EGGS)
Why eggs are selling for over $9 a dozen in some places—and when prices are expected to drop
Woman holding a carton of eggs in her hand.
D3sign | Moment | Getty Images
Original article: https://www.cnbc.com/2025/01/14/why-eggs-are-so-expensive-when-prices-will-drop.html
Peter Burgess COMMENTARY
The price of eggs at food supermarkets in the United States has been low relative to cost of production for decades. This probably explains why small egg producers around the country have goone out of business over the years and the very big very productive egg producing operations owned by very big companies have come to dominate the industry.
I think this has enabled 'oligopolistic' behavior by these big companies and the story below is, I believe, an example of this.
I also think that the story is something of an exageration.
Peter Burgess
Written by Mike Winters
Published Tue, Jan 14 20259:00 AM EST
The price of eggs has soared in the past few months and shoppers are doing double takes as a dozen eggs rings up at more than $9 at some retailers.
In December 2024, wholesale eggs averaged $4.62 per dozen, according to the U.S. Department of Agriculture. But prices vary significantly by region due to transportation costs, local demand and market competition, with average costs of $8.04 in California and $6.25 in New York as of Jan. 10.
The biggest factor pushing up egg prices is a wave of avian flu, which began in early 2022 and led to the culling of millions of egg-laying hens. With demand remaining steady, the reduced supply has caused prices to rise.
This is the second time egg prices have surged since 2022, following a previous wave of avian flu that wiped out large numbers of egg-laying hens and caused supply shortages that year. Avian flu has wiped out over 100 million chickens since a major outbreak began in early 2022.
When prices might decline
With supply still struggling to recover and cases continuing, grocery store egg prices show no signs of easing anytime soon — but they will eventually.
While the U.S. Department of Agriculture doesn’t forecast national wholesale prices, the New York wholesale average per dozen is considered the industry standard. Last month, the USDA estimated New York’s average price would remain high at $4.80 in the early part of the year, but eventually drop to $2.35 per dozen by the end of 2025, up from an earlier projection of $2.10 per dozen.
While prices are expected to ease from late 2024 highs, they will likely stay above pre-outbreak levels through 2025. However, further outbreaks or supply disruptions could push prices higher again, as egg prices tend to change quickly in response to market conditions.