The current bird flu pandemic has plunged the U.S. into a severe egg shortage, causing major grocery chains to limit purchases.
Quick Takes
- U.S. grocery stores have set limits on egg purchases due to avian flu and increased prices.
- Trader Joe’s and Costco are among retailers implementing strict purchase restrictions.
- The average egg price rose by 37% in December 2024 due to production declines.
- The USDA projects a 20% further price increase by the end of 2025.
Retailers Enforce Purchase Limits
Grocery chains across the United States are limiting egg purchases as the H5N1 bird flu continues to disrupt supply chains. Retail giants like Trader Joe’s and Costco have introduced purchase restrictions to stabilize consumer access amidst soaring prices and diminished poultry numbers. Trader Joe’s now allows only one carton of eggs per customer nationwide. Costco restricts consumers to three packages a day, each containing two or four dozen eggs.
Walmart has also joined the ranks by limiting bulk purchases to two 60-egg cartons per customer. The outbreak has led to a critical egg shortage, prompting viral social media posts of bare grocery shelves and rapid stock depletion in stores.
Impacts on Production and Prices
Millions of egg-laying hens have been culled in states from Maryland to Arizona. This represents a staggering decrease in the egg-laying poultry population. The ongoing crisis has resulted in a 3% drop in egg production reported by the USDA in December. Egg prices hit an all-time high, with wholesale prices reaching $8 per dozen, eclipsing earlier records.
The U.S. Department of Agriculture (USDA) has further cautioned of an impending 20% price increase as industry experts foresee sustained shortages. Waffle House, for instance, has begun adding a 50-cent surcharge per egg, impacting both large-scale chains and small eateries like Ursula in New York.
Outlook and Measures
The H5N1 strain, highly contagious among birds since its first detection in 1996, has devastated the U.S. poultry segment since 2022. Grocery chains and suppliers are attempting to cope with the unprecedented challenge by imposing caps to ensure the availability of essential commodities.
Affected consumers and businesses continue to grapple with these constraints as the nation works towards containing the virus and stabilizing the supply chain. As new outbreaks are reported, more hens are being culled to prevent the virus’s spread, highlighting the fragile balance of managing the crisis while fulfilling consumer demand.
