Egg prices have been on the rise, leaving many consumers and businesses wondering: Why are eggs so expensive right now? Several factors contribute to the fluctuating cost of eggs, from supply chain disruptions to market demand. Whether you’re a retailer, foodservice provider, or manufacturer, understanding these dynamics can help you navigate the egg market effectively.
1. Supply and Demand Imbalances
Like any other commodity, eggs are subject to supply and demand fluctuations. When demand increases or supply decreases, prices rise. Several factors affect supply, including seasonal trends, production levels, and unexpected disruptions.
- Seasonal Demand: The holiday season (Thanksgiving, Christmas, and Easter) typically drives higher egg consumption, leading to temporary price spikes.
- Consumer Trends: Health-conscious consumers and high-protein diet trends have increased egg demand in recent years.
Many industry experts predict that an egg shortage in 2025 could further drive up prices due to ongoing production challenges and disease outbreaks.
3. Rising Feed Costs
Feed is the largest expense in egg production, accounting for up to 70% of total production costs. Corn and soybean meal, the primary ingredients in poultry feed, have seen significant price increases due to:
- Global grain shortages caused by supply chain disruptions and geopolitical conflicts.
- Extreme weather conditions affecting crop yields.
- Increased demand for alternative fuel sources like biofuels, which compete with feed supply.
When feed costs rise, so do egg prices, as farmers pass on these expenses to maintain profitability. This is another factor behind why eggs are so expensive right now.
2. Impact of Avian Influenza (Bird Flu)
One of the biggest disruptors in egg pricing is avian influenza (AI). When an outbreak occurs, millions of laying hens may need to be culled to prevent the spread of the disease, significantly reducing egg supply.
- In 2022, a major avian flu outbreak led to the loss of over 40 million laying hens, causing egg prices to skyrocket.
- Recovery from such outbreaks takes months, as farmers must rebuild their flocks and ensure safe production conditions.
This recurring issue is one of the reasons why eggs are so expensive again in recent years. If another outbreak occurs, it could lead to an egg shortage in 2025, causing further price spikes.
4. Labor and Transportation Challenges
Egg production, packaging, and distribution require labor at every stage. Labor shortages, higher wages, and increasing fuel costs contribute to overall price increases.
- Truck driver shortages and rising diesel prices make it more expensive to transport eggs from farms to retailers.
- Labor costs have risen due to increased wages in the agricultural sector and supply chain industries.
These challenges add to production costs, keeping egg prices high. If workforce shortages continue, they could further contribute to an egg shortage in 2025.
5. Regulatory and Sustainability Factors
Many states and countries are implementing new regulations around animal welfare, which can impact egg supply and pricing.
- Cage-Free Laws: States like California, Massachusetts, and Colorado have passed laws requiring cage-free egg production. While these changes improve animal welfare, they also increase production costs due to higher space requirements and facility upgrades.
- Environmental Policies: Sustainable farming practices and carbon footprint reduction initiatives can also contribute to rising costs.
New regulations could play a role in why eggs are so expensive again, as producers adjust their operations to comply with evolving standards.
6. Global Market Influences
Egg prices are not just influenced by local factors—they are part of a global market. Events like international trade restrictions, currency fluctuations, and supply chain disruptions all play a role.
- Export bans or restrictions in major egg-producing countries can create supply shortages.
- Fluctuating currency values affect the cost of importing feed and equipment, impacting production expenses.
If global supply chain disruptions continue, we could see an egg shortage in 2025, further driving up costs.
How Can Businesses Adapt?
For retailers, food manufacturers, and foodservice providers, adapting to rising egg prices is essential. Here are a few strategies:
- Diversify Suppliers: Working with multiple suppliers helps mitigate risk and ensures a more stable egg supply.
- Optimize Purchasing Strategies: Locking in long-term contracts can help secure more predictable pricing.
- Explore Alternative Products: Egg powders and liquid eggs can sometimes offer cost advantages over shell eggs.
- Stay Informed: Market trends and industry updates can help businesses make proactive purchasing decisions.
FAQ
Why are eggs so expensive but not chicken?
Eggs are more expensive than chicken due to key differences in production and market factors. Laying hens live longer and are more affected by avian flu, leading to supply shortages when flocks are culled. Egg production is also more feed-intensive, making it more sensitive to rising costs. Additionally, cage-free regulations have increased production expenses, while broiler chickens (raised for meat) have shorter lifecycles and can be replaced quickly, keeping chicken prices stable. With concerns about a potential egg shortage in 2025, securing a reliable egg supply is crucial.
Final Thoughts
Egg prices are influenced by multiple factors, including disease outbreaks, feed costs, labor shortages, and regulatory changes. While prices may fluctuate, businesses can stay ahead by understanding these market forces and planning accordingly.
At Eggs Unlimited, we help businesses navigate the complexities of the egg market by providing expert insights, reliable supply chain solutions, and competitive pricing. Contact us today to secure your egg supply and optimize your procurement strategy.
Why Eggs Unlimited?
As one of the largest egg producers in the U.S., Eggs Unlimited is well equipped to face any challenge. That includes increasing demand for eggs, issues with a specific farm, and challenges across the supply chain. As customers explore their egg options, our knowledge, resources, and experience can help them make smart, cost-effective choices.
At Eggs Unlimited, we partner with farmers and suppliers that care about their animals and the environment. We’re proud to work with farmers who follow robust environmental and ethical practices. Plus, with our global reach, we can take on any challenge for customers all around the world. We always have a way to meet – and exceed – our customers’ expectations.
Connect With Top Egg Producers
Connect with the Eggs Unlimited Sales team to learn more about your egg options. eusales@eggsunlimited.com