Scrambling for Eggs: U.S. Faces Shortage While Trump Serves Up More Drama

The United States is currently experiencing a significant egg shortage, leading to soaring prices and disrupted supply chains. This situation is primarily attributed to a severe outbreak of avian influenza (bird flu), which has led to the culling of millions of egg-laying hens to prevent the disease's spread. Consequently, the egg supply has diminished, causing prices to escalate sharply. 

 Price Increases

In January 2025, the average price for a dozen Grade A large eggs reached $4.95, marking a 15% increase from the previous month and a 53% surge compared to the same period last year. This spike is the highest recorded since 2015.

 Impact on Demand and Supply

The elevated prices have led to a 15% year-over-year decline in egg purchases during the first half of January 2025. This inverse relationship between price and demand is consistent with historical trends, where higher prices typically result in reduced consumer purchases. The avian flu outbreak has significantly reduced the population of egg-laying hens, exacerbating the supply shortage. Despite efforts to replenish flocks, the persistent nature of the disease poses ongoing challenges to restoring normal production levels. 

 Broader Implications

The egg shortage and resulting price hikes have had widespread effects: 

 Food Industry

Restaurants and bakeries face increased operational costs, leading some to implement surcharges or adjust menus. For instance, a Washington-based restaurateur reported an additional $20,000 in weekly expenses due to rising egg prices. 

 Consumer Behavior

The traditional practice of Easter egg decorating is under threat, with retailers like Costco and Trader Joe's limiting egg purchases. This scarcity has prompted consumers to seek alternative solutions, such as using wooden or reusable eggs.

 Inflationary Pressures

The surge in egg prices contributes to broader inflation concerns, affecting household budgets and prompting shifts in consumer spending patterns. In summary, the U.S. egg shortage, driven by the avian flu outbreak, has led to unprecedented price increases and supply constraints, impacting both consumers and businesses nationwide.