Egg prices in the U.S. have been on the rise for months, with little sign of relief. While inflation in other food categories has shown signs of easing, the cost of eggs remains stubbornly high, potentially fueling fresh concerns among consumers about the broader economic outlook. This could pose a challenge for President Donald Trump’s administration, which has made reducing inflation a key policy goal.
Avian Flu Crisis Shrinks Egg Supply
One of the biggest drivers behind soaring egg prices is the outbreak of highly pathogenic avian influenza (HPAI), which has significantly reduced the nation’s laying hen population. Since early 2022, HPAI outbreaks have led to the culling of more than 145 million domestic poultry nationwide, drastically tightening egg supplies.
Egg prices first skyrocketed in 2022, with costs easing in 2023 before surging again in 2024 due to another wave of bird flu infections. According to the latest Consumer Price Index (CPI) data, egg prices surged 8.4% in December compared to the previous month—marking the largest increase among all food categories. This followed an 8.2% jump in November, leaving prices 37% higher than a year ago.
Retail prices vary widely by region and store type, but the national average for a dozen grade-A large eggs hit $4.15 in December, according to the Bureau of Labor Statistics. This is a stark contrast to January 2020, when the same carton cost just $1.46—underscoring how pandemic-era disruptions, supply chain constraints, and avian flu have reshaped pricing.
The Outlook for Egg Prices Remains Uncertain
If recent trends continue, the situation may worsen before it improves. Just last week, an HPAI outbreak in Newton County, Missouri, affected an additional 1.1 million commercial layer chickens, pushing the total number of infected birds to over 8.7 million in January alone.
“Producers remain on high alert as HPAI continues to spread across different regions,” noted Pooran Sharma, a commodity analyst at Stephens, in a recent client note. Industry experts caution that if bird flu continues at this pace, egg prices could climb even higher in the coming months.
Trump Administration Faces Scrutiny Over Food Prices
Rising egg prices could put political pressure on President Trump, who has long criticized the Biden administration for high inflation and increasing food costs. Now, with prices still climbing, his administration faces tough questions about how it plans to control consumer costs.
At a White House press briefing this week, newly appointed Press Secretary Karoline Leavitt was asked about persistently high egg prices and whether the administration would take steps to ease the burden on households.
“There’s been a lot of reporting that wants to place the blame on this White House,” Leavitt stated. “But let’s be clear—in 2024, when Joe Biden was in office, egg prices skyrocketed by 65% across the country. That’s a direct result of policies that crushed American farmers and worsened supply chain disruptions.”
Leavitt also pointed out that under the Biden administration, over 100 million chickens were culled as part of federal efforts to contain the spread of bird flu. However, she did not clarify whether the Trump administration plans to adopt a different approach to managing poultry diseases.
Egg Producers Cashing In on High Prices
Despite higher prices squeezing household budgets, demand for eggs remains strong, keeping producers highly profitable. Consumers continue to purchase eggs as a staple food, even as some households explore alternative protein sources.
For major egg producers, this has translated into record earnings. Cal-Maine Foods, the largest egg producer in the U.S., reported earnings of $4.47 per share in its most recent quarterly report, significantly beating Wall Street’s expectations of $4.05 per share. The company’s net sales hit $954.7 million, surpassing analysts’ estimates of $751.5 million.
“Our strong financial performance is driven by higher market prices and sustained consumer demand for shell eggs,” said Cal-Maine CEO Sherman Miller in the company’s earnings release. He also noted that sales received a seasonal boost leading up to Thanksgiving and were further bolstered by the company’s recent acquisition of additional egg production assets in June.
Cal-Maine’s stock has soared, more than doubling in value over the past 12 months, reflecting investor confidence in the egg industry’s continued profitability. However, some consumer advocates have accused egg producers of exploiting tight supply conditions by raising prices beyond necessary levels to maximize profits. While no widespread legal action has been taken, concerns over potential price gouging remain.
What Comes Next?
As the holiday season fades, it remains uncertain whether consumers will adjust their purchasing habits in response to continued high prices. While demand has held steady so far, further price increases could drive some households to seek cheaper protein alternatives.
For the Trump administration, the challenge will be navigating public frustration over inflation while managing the economic fallout of ongoing bird flu outbreaks. With food costs remaining a key issue for voters, how the administration responds to rising egg prices may shape broader perceptions of its economic policies in the months ahead.
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