The cost of eggs continues to climb, reaching a new peak in January 2025. According to the Consumer Price Index, a dozen Grade A large eggs averaged $4.95, surpassing the previous high of $4.82 set in January 2023. While prices briefly dipped to $2.67 by May 2023, they've been steadily rising, exceeding the $3 mark since June 2024 and remaining above $2 since January 2022.

Several factors contribute to this surge in egg prices. The highly pathogenic avian influenza (HPAI), commonly known as bird flu, has decimated egg-laying hen populations. The USDA reports that over 20 million hens were culled in the final quarter of 2024 alone to contain the outbreak's spread. This drastic measure has significantly impacted egg production, as it takes roughly five months for a chicken to mature and begin laying.

Adding to the price pressure are state laws mandating cage-free egg production. Cage-free eggs generally command higher prices than conventional eggs, even without the added impact of disease outbreaks. While experts acknowledge that pasture-raised chickens produce superior eggs, these birds face a heightened risk of contracting HPAI due to their increased exposure to wild birds, which are known carriers of the virus.

The University of Minnesota highlights the contagious nature of HPAI, explaining that the virus can persist in bird droppings for extended periods, particularly in damp, cool conditions. This poses a significant challenge for poultry farmers, as infected birds can transmit the disease to other flocks through contact with birds, humans, manure, and equipment.

The combined effects of the bird flu outbreak and cage-free regulations have created a perfect storm for egg prices, leaving consumers facing record-high costs with no clear indication of when relief might arrive.