Consumers are experiencing the highest egg prices in history driven by increased demand and highly pathogenic avian influenza, which could keep the market elevated for a while.

The latest report from the Bureau of Labor Statistics puts the average retail egg price at $4.90 per dozen nationwide.

“That’s an all-time high and a lot more expensive than what consumers are typically dealing with,” Brian Earnest, lead animal protein analyst for CoBank told FarmWeek. “I think back 10 years ago when it was pretty common to see $1 per dozen or less.”

He said HPAI is one of the main causes, noting the current outbreak has had more of a year-round impact than the previous outbreak in 2015.

“Now it has been found in all 50 states and has had an impact to supply every month since February of 2022,” Earnest said.

As a result, there are 8 percent fewer egg laying hens in U.S. production compared to two years ago, and Earnest said consumer demand has also shifted in that time frame.

“We’ve seen big growth in demand of cage-free eggs,” he said, using California as example of a state that has elected to go completely cage-free.

“There’s roughly 39 million residents in California and there were roughly 9 million table egg laying hens that were depopulated as a result of bird flu in California,” he said. “Their ability to feed their residents eggs that were produced within the state was severely impacted.”

But Earnest said even without HPAI, a boost in demand would still have prices somewhat elevated, noting that eggs have become a staple item for innovation in quick-service restaurant entrees, and consumers have latched on to emerging trends like all-day breakfast.

“We moved from consuming roughly 275 eggs per capita annually in the U.S. in the 2015 time frame to nearly 300 by the time we got to 2020, so that’s a pretty big increase in consumption,” Earnest said.

He said lingering impacts from demand could prolong the higher price environment through Easter and even Mother’s Day.

“We may be seeing a peak in terms of shelf prices here in the next 3-4 months, but the summer months typically bring softer demand to the egg case,” he said. “That’s when I think the industry has an opportunity to get caught back up.”

The decrease in supply has left shelves temporarily bare in some regions.

“I think the West Coast might be feeling a little bit more of an impact than what the Midwest would be seeing just due to proximity of where major production is,” Earnest said.

But eggs are still being produced, he said optimistically.

“Overall, the system works pretty well,” Earnest said. “If it can work through these market deficiencies, I think we’ll start seeing price ration demand a little bit and then work toward inventorying where there are empty shelves.”

As poultry producers ramp up biosecurity measures and migration season winds down, he is hopeful concerns will ease in the summer months.

“But for now, we’re continuing to monitor a very difficult situation for farmers and consumers alike,” Earnest said.

This story was distributed through a cooperative project between the Illinois Farm Bureau and Illinois Press Association. For more food and farming news, visit FarmWeekNow.com.