
Karoline Leavitt, the new White House press secretary, brought attention to skyrocketing egg prices, raising questions about inflation and avian flu’s impact on the market.
Key Insights
- Bird flu is causing farmers to slaughter millions of chickens monthly, leading to increased egg prices.
- Nationwide, the average price per dozen eggs reached $4.15 in December, with a projected 20% rise in the coming year.
- Grocery stores are limiting egg purchases due to shortages and high demand.
- Egg prices have surged by 28% year-over-year in early January, reaching record highs.
The Avian Influenza Outbreak
The Highly Pathogenic Avian Influenza (HPAI) outbreak has hit the U.S. poultry sector hard, necessitating the culling of over 20 million hens. This significant loss of laying hens has drastically reduced the egg supply, leading to substantial price hikes. The outbreak began in 2022, necessitating the slaughter of more than 145 million birds, predominantly egg-laying chickens.
The avian influenza’s impact extends beyond just chickens, affecting dairy cattle as well. It has not subsided in high summer temperatures, indicating the virulence of the current strain. Authorities have implemented strict biosecurity measures to curb the virus’s spread, from washing trucks to installing shower facilities.
Economic Impacts and Predictions
The economic fallout from the avian flu outbreak has been exacerbated by inflationary pressures, leading to skyrocketing food prices. December’s average egg price was $4.15 per dozen, with predictions pointing to further increases. In California, some regions reported prices as high as $9 per dozen, underscoring the severity of the issue.
“According to Earnest Scanner Consumer Packaged Goods (CPG) product data, this marks the highest YoY price increase since mid-2023,” – Earnest Analytics
These limitations have resulted in a decline in total egg purchases, as shortages pressure grocers to enforce buying limits. Organic and cage-free eggs have been especially affected, primarily due to stringent laws in 10 states mandating cage-free operations. This exacerbates supply disruptions and contributes to escalating prices.
Political Reactions
Karoline Leavitt has criticized the Biden administration’s economic policies, attributing the climbing prices to legislative decisions and pandemic events. Leavitt’s remarks include highlighting the administration’s role in the mass culling of chickens, linking these actions to the current supply crisis. She advocates for confirming President Trump’s nominees, like Brooke Rollins for the Department of Agriculture, as part of the solution.
“As far as the egg shortage, what’s also contributing to that is that the Biden administration and the Department of Agriculture directed the mass killing of more than 100 million chickens, which has led to a lack of chicken supply in this country, therefore, a lack of egg supply, which is leading to the shortage.” – Karoline Leavitt
Leavitt’s comments reflect deep-seated tensions surrounding food prices, invoking broader economic policies and their impacts on everyday Americans. Looking ahead to 2025, projections suggest the average price for a dozen eggs could near $5, which would set a concerning record.
Sources
2. Egg prices are soaring. Don’t expect that to change anytime soon