Egg prices have grown to US$8.97 per dozen in California, a 70% increase from November 2024, according to the U.S. Department of Agriculture’s (USDA) December 27, 2024, Egg Market Overview.
According to the USDA, the sharp increase in price is due to nine confirmed cases of highly pathogenic avian influenza (HPAI) across the state in December 2024 alone, which led to the depopulation of almost six million layers.
Cases were reported in Merced, Riverside, San Joaquin and Stanislaus counties. The largest losses were 1.7 million layers on December 5, 1.1 million on December 24 and 793,700 layers on December 5. However, the agency has not reported how many layers were lost in the one of the most recent HPAI cases confirmed on December 24 in Stanislaus County.
Additionally, the USDA pointed out that the flock losses came at a critical demand point during the holiday season when shell egg demand is historically high, which drove prices even higher. This has led to retailers limiting the use of incentives for shell eggs and focusing on maintaining a consistent supply as demand begins to reduce in the post-holiday period.
Eggs Unlimited Global Trade Strategist Brian Moscogiuri said that there have been shortages of California compliant, or cage free, shell eggs specifically at several major chains in the state and surrounding states, especially during the holiday demand period.
In combination with the recent HPAI cases in Iowa and Ohio, the USDA estimate of the total U.S. layer flock that is likely at or below the 300 million mark, which would be the lowest point since outbreaks began in 2022, he explained.
“Production is likely going to take 4-6 months to fully recover, but only if we do not see any more layers lost to the virus,” Moscogiuri said.
