Why did the chicken cross the road? To take out a loan to buy a carton of eggs. The situation has caught the attention of the mainstream media and progressive lawmakers. Their intention, of course, it is not to shine a spotlight so US consumers can receive relief but rather an attempt to blame President Donald Trump. Still, after the previous regime employed simplistic strategies that have done little to lower egg prices, the new administration is taking a fresh crack at the issue that goes beyond culling.
What to Do About Eggflation?
Agriculture Secretary Brooke Rollins penned an op-ed in The Wall Street Journal on Feb. 26 outlining five steps to combat the ongoing avian flu outbreak and lower egg prices. Due to a blend of the highly pathogenic avian influenza and higher input costs (energy, feed, and labor), inflation has rocketed 200% over the last few years, bringing the national average cost of a dozen eggs to an all-time high of $4.95. Rollins has presented a $1 billion five-point plan to stabilize the situation.
The first two ideas include industry funding. The US government will dedicate up to $500 million to assist domestic poultry producers to institute “gold-standard biosecurity measures.” Officials will also allocate up to $400 million of financial relief to farmers whose flocks were devastated by the avian flu.
Second, the US Department of Agriculture (USDA) will pursue the use of vaccines and therapeutics for egg-laying hens, including $100 million in funding for research and development. While the USDA has not approved such products, officials intend to meet with public health professionals, poultry farmers, and state leaders. "This should help reduce the need to 'depopulate' flocks, which means killing chickens on a farm where there’s an outbreak," Rollins wrote.
The next policy action will be to eliminate regulatory burdens on egg producers. One component of this initiative, she said, is determining how to aid farmers who have been suffocated by state laws. Rollins alluded to California's Proposition 12, which mandated minimum space requirements for egg-laying hens that have added to production costs. The Golden State might be selling golden eggs to customers, as the average price is nearly $10 per dozen.
Last, and this might be the tricky part amid today’s volatile global trade climate, the White House will take a look at temporary import options to lower egg prices. She noted that the administration would proceed with this mechanism only if imports adhered to tough US safety standards and would not jeopardize American farmers and their access to worldwide markets in the future.
Rollins concluded in her newspaper piece:
“This five-point strategy won’t erase the problem overnight, but we’re confident that it will restore stability to the egg market over the next three to six months. This approach will also ensure stability over the next four years and beyond. American farmers need relief, and American consumers need affordable food. To every family struggling to buy eggs: We hear you, we’re fighting for you, and help is on the way.”
Eggsploring the Market
As costs reach record levels, some of the developments have been remarkable. Texas customs officers reportedly stopped nearly 100 people from smuggling eggs into the United States. Turkey plans to supply the US market with 33 million pounds of eggs over the next four months. Denny's and Waffle House, the popular American diner chains, recently announced that they are adding a temporary surcharge on meals that include eggs. Rival chains, like McDonald’s and Cracker Barrel, are trying to poach customers from these establishments by clarifying that they will not be slapping additional costs on patrons’ bills.
These news items come after the USDA’s Economic Research Service's food outlook projected that egg prices will increase by about 40% in 2025. In January, egg prices surged more than 15%, the largest monthly increase since June 2015, representing nearly two-thirds of the monthly jump in food prices.
Feeling Egghausted
Will shoppers ever catch a break at the local supermarket? While food inflation has stabilized over the last year, prices have soared more than 20% since the pandemic, and officials and economists agree that they will not return to pre-crisis levels. The only relief consumers will feel is a slower growth rate, meaning that households will need to start earning wages that increase faster than price inflation. The good news? Real (inflation-adjusted) average hourly earnings rose 1% from January 2024 to January 2025. The bad news? Real average weekly earnings fell 0.3%. It is a fate worse than the frying pan.
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