Why Egg Prices are so High!

Unless you've been living under a rock lately, it’s no surprise that eggs have been significantly more expensive at the grocery store—up 50% per dozen since 2020. Food prices have been on a zigzag ride since 2020, and it doesn’t seem to be changing anytime soon. Egg prices have been leading the charge in food cost hikes. Here are a few reasons driving egg prices up and away.

Rising Feed Costs and Inflation

One of the primary reasons behind the increase in egg prices is the rising cost of poultry feed, which has been significantly impacted by broader inflationary pressures. Since feed is the main source of nutrition for egg-laying hens, any spike in feed prices directly affects the cost of egg production. Over the past few years, feed costs have soared due to disruptions in global supply chains and rising prices of raw materials like corn and soybeans, which are key ingredients in poultry feed. Inflation over the past few years has only exacerbated the issue. Beyond just fuel and raw materials, the overall inflationary environment has caused prices to climb across the board, from labor to packaging. This has created a ripple effect in the poultry industry, where added costs quickly pile up, leading to significant price hikes at the grocery store.

For consumers, this means higher prices at checkout, but for egg producers, it's a tight balancing act. While higher prices may help offset the increased costs of production, they also put pressure on producers’ ability to keep up with consumer demand, especially as price hikes continue to compound over time.

Supply Chain Disruptions and Labor Shortages

The pandemic and its aftermath caused severe disruptions across global supply chains, and the egg industry has certainly felt the impact. When supply chains break down, it becomes harder for farmers to obtain the materials they need to raise healthy flocks and process eggs efficiently. Whether it's the transportation of feed, packaging materials, or the eggs themselves, delays and shortages have pushed costs upward at every stage of the supply chain.

In our farm, getting new pullets (young laying hens) from growers has been one of the biggest problems over the past couple of years, and I don’t see it changing anytime soon. It takes a small chick 18–20 weeks before it begins laying, which may not seem like a long time, but the issue is that large commercial flocks usually get priority over smaller, pasture-based farms. With a commercial flock being rotated out every 50 weeks, this creates strain on pullet growers. Another issue we've run into on our farm is getting the cartons we pack our eggs in. We order cartons every other year, and 2020 was the year we were supposed to order. That year was practically impossible to get any supplies, and cartons were no different. While things have gotten somewhat back to normal, supply chain issues are still present.

Avian Influenza

Avian influenza has been a major driver of soaring egg prices, and the problem is especially severe in large commercial flocks. In many industrial-scale poultry farms, hundreds of thousands of birds are housed in a single facility. While this setup is efficient for mass production, it also creates a perfect breeding ground for diseases like avian influenza to spread quickly. When bird flu enters one of these large-scale operations, it can wipe out vast numbers of birds in a short amount of time.

Infected hens within these massive flocks are often culled to prevent the virus from spreading further, leading to significant losses. The problem is compounded by the sheer size of these commercial operations—when so many birds are packed into one location, the risk of rapid transmission is far higher compared to smaller, more dispersed flocks. This makes outbreaks even more devastating, as the loss of tens or even hundreds of thousands of hens can severely disrupt the egg supply.

The larger the flock, the greater the impact on egg production. A single outbreak can result in a massive reduction in supply, and because many of these commercial farms supply a large portion of the market, their losses have a ripple effect across the entire industry. As egg production takes a hit, prices spike in response to the reduced supply, leaving consumers to bear the brunt of the costs.

With avian influenza outbreaks continuing to pose a threat to the poultry industry, large commercial flocks are particularly vulnerable. While the efficiency of large-scale farming has many advantages, the potential for widespread damage when bird flu strikes is a significant downside—one that directly impacts egg prices and the availability of this essential food item.

The Case for Smaller Flocks and Sustainable Solutions

While the factors we've discussed—avian influenza outbreaks, rising feed costs, and supply chain disruptions—are key reasons behind the sharp increase in egg prices, they also highlight a larger issue: the vulnerabilities of the current industrial farming model. When large commercial flocks, with their hundreds of thousands of birds under one roof, are hit by disease or supply chain disruptions, the effects can be devastating—not only for farmers but also for consumers. The ripple effects of these issues cause prices to climb and create long-lasting challenges in the marketplace.

One possible solution to help mitigate these problems is shifting toward smaller, more localized flocks. Smaller farms, like ours, typically house fewer birds, which means they are less likely to be impacted by large-scale outbreaks of diseases like avian influenza. With better management and a more diversified approach, smaller operations can be more resilient to both health risks and fluctuations in the global supply chain. Additionally, smaller farms can offer more sustainable practices and provide consumers with fresher, local eggs, helping to stabilize supply and demand.

By fostering a more decentralized farming model, we can create a more balanced food system, where the risks associated with massive industrial operations are reduced. Smaller farms can also focus on higher-quality, ethical practices that prioritize animal welfare, helping to build a more sustainable and resilient egg industry.

In short, diversifying egg production through smaller, more localized flocks could be a key strategy in improving the stability of prices and supply, while also offering a more sustainable and responsible approach to farming. As consumers become more aware of the benefits of supporting smaller, local farms, the hope is that this shift could not only help lower egg prices but also create a more sustainable, resilient food system for the future.