The reason behind the high prices of eggs at over $9 a dozen in certain locations and when the prices are predicted to decrease.

The reason behind the high prices of eggs at over $9 a dozen in certain locations and when the prices are predicted to decrease.
The reason behind the high prices of eggs at over $9 a dozen in certain locations and when the prices are predicted to decrease.

In recent months, the cost of eggs has increased significantly, causing shoppers to do a double-take when they see a dozen eggs costing over $9 at some retailers.

According to the U.S. Department of Agriculture, the average price of wholesale eggs per dozen in December 2024 was $4.62. However, prices vary greatly across regions due to factors such as transportation costs, local demand, and market competition. For instance, the average cost of eggs in California was $8.04, while in New York it was $6.25 as of January 10.

The avian flu outbreak in early 2022, which resulted in the culling of millions of egg-laying hens, has been the primary driver of rising egg prices. Despite stable demand, the reduced supply has caused prices to increase.

Since 2022, egg prices have surged twice, the second time being due to a major outbreak of avian flu that killed over 100 million chickens.

When prices might decline

Egg prices in grocery stores are unlikely to decrease anytime soon due to ongoing supply struggles and rising cases, but they will eventually ease.

The New York wholesale average per dozen is the industry standard, and the USDA has estimated that the average price in New York will remain high at $4.80 in the early part of the year but will eventually drop to $2.35 per dozen by the end of 2025, up from an earlier projection of $2.10 per dozen.

Although prices are predicted to decrease from their late 2024 highs, they are expected to remain above pre-outbreak levels until 2025. Nevertheless, any additional outbreaks or supply disruptions may cause prices to rise once more, as egg prices are known to fluctuate rapidly based on market conditions.

Improve your AI abilities and increase productivity with CNBC's online course "How to Use AI to Succeed at Work." Skilled instructors will guide you through getting started, practical applications, effective prompt-writing, and common pitfalls to avoid. Register now and use the coupon code EARLYBIRD for a 30% discount off $67 (+ taxes and fees) through February 11, 2025.

Sign up for CNBC Make It's newsletter to receive expert advice on work, money, and life.

How I built a $100,000 a year business without a college degree
by Mike Winters

Make It