Egg prices are higher and will continue into 2025

egg prices is increasing, and industry experts predict that these high costs will continue into 2025, especially if Highly Pathogenic Avian Influenza (HPAI), also known as “bird flu” infections, persists.

Kevin Bergquist, Industry Manager for Wells Fargo Agri-Food Institute, said egg prices have increased since 2023 due to a combination of seasonal price increases around the holidays and egg supply disruptions due to bird flu.

Prices last year “generally” remained above 2023 prices and even “often exceeded 2022 egg prices, when HPAI has really captured the egg market,” according to Bergquist.

HERE’S WHY BALANCES ARE ACTUALLY INCREASING PRICES

Wholesale egg prices, which increased by approximately 55% in November, do not fully reflect consumer egg prices prices at the grocery store, This can vary greatly.

Grocery prices rose 0.5% in November, according to the Consumer Price Index, while the cost of four of the six major grocery food groups increased. Eggs showed by far the biggest increase.

Meat, poultry, fish and egg prices increased by 1.7% in November, while egg prices increased by 8.2%.

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Wells Fargo Agri-Food Institute Chief Agricultural Economist Dr. Michael Swanson told Fox Business that the consumer price is more valid because it’s what the consumer sees.

“Many retailers have been slow to adjust prices on staples like milk and eggs that bring consumers into the store,” Swanson said. “They will use this category to help with their overall pricing. Sometimes they get bigger margins, sometimes they get negative margins in the short term to avoid upsetting the consumer with big changes.”

Before the great bird flu epidemic According to Bergquist, in March 2022, flock numbers were sufficient to support low egg prices. The wholesale price is less than $1.50 per dozen, he noted.

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However, the epidemic negatively affected the market, causing egg prices to rise to a record level in December 2022. The average price corrected to a lower level by 2023 as producers rebuilt their herds.

Bergquist said flock size was again hampered by the resurgence of bird flu in late 2023 and 2024, leading to undersupply of egg markets.

Due to recurring outbreaks this year, producers still have not been able to rebuild the total laying flock.