Egg prices are soaring, and Oregon’s among the states hardest hit. Here's Why

Egg prices are soaring, and Oregon’s among the states hardest hit. Here's Why
Courtesy of The Oregonian

The ongoing bird flu outbreak continues to wreak havoc on the U.S. poultry industry, forcing farmers to cull millions of chickens each month. As a result, egg prices have soared, more than doubling in many areas since the summer of 2023. With Easter on the horizon, demand for eggs is expected to rise further, adding to the strain on an already disrupted market.

Egg Prices on the Rise

In December 2024, the average price of a dozen eggs in the U.S. hit $4.15, approaching the record-high of $4.82 set two years ago. The U.S. Department of Agriculture (USDA) projects prices will increase by another 20% this year.

In some parts of the country, shoppers are already paying well above the national average, and some grocery stores are struggling to keep shelves stocked. In states that mandate cage-free eggs, prices are even higher. For example, at a Fred Meyer in Portland, Oregon, the lowest-priced cage-free eggs were selling for $7.49 per dozen, while even lower-quality Grade B eggs were priced at $5.29.

Some retailers have imposed limits on egg purchases to manage supply shortages, reflecting the severity of the issue.

Why Are Egg Prices So High?

The primary driver of skyrocketing egg prices is the highly pathogenic avian influenza (HPAI), commonly known as bird flu. The outbreak, which began in 2022, has led to the mass culling of entire poultry flocks whenever the virus is detected on a farm. Since industrial egg farms often house over a million chickens, even a single outbreak can result in an immediate and significant reduction in egg production.

The problem is further compounded by the time-consuming process of recovering from an outbreak. After culling infected flocks, farmers must dispose of carcasses, disinfect facilities, and restock with new birds, which can take several months.

To date, more than 145 million chickens, turkeys, and other birds have been slaughtered due to the ongoing outbreak. The vast majority of these were egg-laying hens, exacerbating the egg supply crisis.

Impact of Cage-Free Egg Laws

New regulations requiring cage-free eggs have also contributed to price increases and supply disruptions. In 10 states, including Oregon, Washington, California, and Colorado, laws mandate that egg-laying hens have minimum space requirements or cage-free housing.

This transition requires significant investment from farmers, which can reduce the number of eggs available in the short term while producers adjust to the new regulations.

Challenges in Controlling Bird Flu

The spread of bird flu remains difficult to contain due to its primary transmission method—wild birds, especially migratory waterfowl like ducks and geese. While the virus is often fatal to domesticated poultry, many wild birds carry it without symptoms, allowing it to mutate and spread.

The virus spreads through:

  • Droppings from infected birds, which can contaminate farms.
  • Direct contact between farm-raised poultry and wild birds.
  • Human activity, including contaminated boots, clothing, or farm equipment.

Unlike past outbreaks, which subsided during the summer, the current strain of bird flu persisted through warmer months and has now spread to dairy cattle, further complicating containment efforts.

Measures Being Taken to Combat the Outbreak

Farmers and agricultural authorities have implemented strict biosecurity measures to minimize infections. These include:

  • Truck washes to disinfect vehicles entering farms.
  • Worker decontamination procedures, such as mandatory showers and clothing changes before entering barns.
  • Strict equipment policies, ensuring tools used in one barn are not shared.
  • Green laser deterrents to keep wild birds away from poultry facilities.

Dairy farmers have also taken steps to isolate infected cattle and conduct additional testing before moving animals, particularly those being sent to processing plants.

While vaccination efforts are under consideration, vaccinating millions of chickens individually is not currently feasible, and concerns remain that some countries may refuse imports of vaccinated poultry products.

Economic Impact of the Outbreak

The financial toll of the bird flu crisis continues to rise. The USDA has spent over $1.14 billion compensating farmers for birds that had to be culled. An additional $576 million has been allocated to support containment efforts and research.

Beyond eggs, the prices of turkey, milk, and chicken have also been affected by the outbreak, with disruptions in supply chains and increased production costs.

What Consumers Can Expect

While demand for eggs typically spikes ahead of Easter, the already limited supply is likely to push prices even higher in the coming months. Many grocery stores have posted notices warning customers of potential shortages, and consumers in some regions may continue to face higher prices or limited availability.

Despite these challenges, health officials assure that the food supply remains safe. Any sick birds or cattle are kept out of food production, and proper cooking temperatures eliminate any potential risk from the virus. Pasteurization also kills bird flu in milk, with only raw milk being linked to human infections so far.

As the outbreak persists, shoppers should brace for continued volatility in egg prices, with potential relief depending on virus containment, supply chain recovery, and ongoing industry adaptations.