DAILY Bites
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U.S. egg-laying hens and chicken inventory fell 2%, with egg production down 1%.
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Egg prices hit $7.46 per dozen in January, more than double last year’s $2.94.
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HPAI outbreaks cut supply, raising prices and driving consumer shifts.
DAILY Discussion
The U.S. Department of Agriculture’s annual Chicken and Eggs Summary reports a slight decline in U.S. poultry numbers and egg production in 2024.
The average number of egg-laying hens fell to 375 million, a 2 percent drop from the previous year, while egg production declined 1 percent to 109 billion eggs. The total U.S. chicken inventory also decreased by 2 percent, reaching 514 million birds.
Despite a modest rise in broiler chicken prices, egg prices have surged. In late January, the wholesale price for large eggs in New York soared to $7.46 per dozen — more than double last year’s $2.94. USDA now projects an annual average egg price of $4.44 per dozen.
Highly pathogenic avian influenza remains a major driver of price fluctuations. Though the report does not account for recent bird losses in 2025, economist Bernt Nelson of the American Farm Bureau Federation estimates that 43 million birds were lost in January and February alone — representing 25 percent of all birds affected since the outbreak began in 2022. These losses suggest continued price volatility as producers work to rebuild flocks.
The resurgence of HPAI has severely disrupted the U.S. egg market, leading to tighter supplies and rising costs. The latest outbreaks have devastated commercial flocks across multiple states, forcing producers to cull millions of birds. Smaller egg farms, lacking the financial cushion of larger operations, have been hit especially hard. Many are struggling to recover from previous outbreaks, with some downsizing or exiting the industry altogether.
Consumers are adjusting to soaring prices by reducing egg purchases or seeking alternatives. Grocery stores report declining sales, while restaurants and food manufacturers are modifying recipes to use fewer eggs or switching to egg substitutes. Backyard poultry keeping is also making a comeback as individuals look for a more reliable egg supply.
Egg product manufacturers are adapting by revising production schedules and reformulating recipes. While necessary, these adjustments may impact product consistency and consumer preferences in the long run.
Industry analysts predict egg prices will remain volatile in the near term, with future shortages dependent on containment efforts and flock repopulation. However, with ongoing biosecurity measures and strategic adjustments, the market is expected to stabilize over time.
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