Why is eggs so high

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Last updated: April 8, 2026

Quick Answer: Egg prices have risen significantly due to multiple factors including the 2022-2023 avian influenza outbreak that killed over 58 million birds in the U.S., increased production costs with feed prices up 20-30% since 2020, and strong consumer demand. In 2022, U.S. egg prices increased 60% year-over-year, reaching record highs of $4.25 per dozen in December 2022. Supply chain disruptions and inflation have further contributed to elevated prices, though they have moderated somewhat in 2023.

Key Facts

The 2022-2023 avian influenza outbreak affected over 58 million birds in the U.S., the deadliest outbreak in history
U.S. egg prices increased 60% year-over-year in 2022, reaching record highs
Feed costs for egg production increased 20-30% between 2020 and 2022
In December 2022, average U.S. egg prices peaked at $4.25 per dozen
California's Proposition 12 requirements added approximately $0.15-0.25 per dozen in compliance costs

Overview

Egg prices have experienced significant volatility in recent years, with particular spikes occurring during 2022-2023. Historically, eggs have been a relatively affordable protein source, with average U.S. prices typically ranging between $1.00-$2.00 per dozen for much of the 2010s. The modern egg industry developed sophisticated production systems throughout the 20th century, with the U.S. becoming the world's second-largest egg producer after China. However, the industry faces regular challenges from disease outbreaks, with previous avian influenza events in 2015 affecting approximately 50 million birds. The COVID-19 pandemic initially disrupted the egg supply chain in 2020, causing temporary shortages and price fluctuations as restaurants closed and retail demand surged. These events set the stage for the unprecedented price increases that followed in 2022.

How It Works

Egg prices are determined through a complex interplay of supply and demand factors within agricultural markets. On the supply side, production costs include feed (primarily corn and soybean meal, which constitute 60-70% of production costs), labor, energy, housing, and veterinary care. When avian influenza strikes, affected flocks must be depopulated, creating immediate supply shortages that can take 6-12 months to replenish as new hens reach laying age. Demand factors include consumer preferences, population growth, and competing protein prices. The industry operates on thin margins, making it sensitive to cost increases. Price transmission occurs through wholesale markets to retailers, with additional factors like California's Proposition 12 animal welfare standards (effective January 2022) requiring more space per hen and adding compliance costs. Market concentration also plays a role, with the top five egg producers controlling approximately 40% of U.S. production.

Why It Matters

High egg prices significantly impact household budgets, particularly for lower-income families who rely on eggs as an affordable protein source. Eggs provide essential nutrients including high-quality protein, vitamins, and minerals at relatively low cost per nutrient. Price spikes can affect food security and nutritional outcomes. For the food industry, eggs are crucial ingredients in baked goods, pasta, and processed foods, so increased costs ripple through the entire food supply chain. Economically, egg prices serve as an indicator of broader agricultural and inflationary trends. Understanding these price dynamics helps consumers make informed purchasing decisions and policymakers develop appropriate responses to food price volatility and supply chain resilience.