California egg prices are leaving shoppers shell shocked

A severe case of avian flu continues to impact the cost and supply of eggs in the U.S., particularly in California.

The average cost for a dozen large eggs in California was $8.97 in December, up from $5.68 in late November—a 44% increase. In the East, the average cost for a dozen large eggs is hovering around $6.06, and in the Midwest, it’s $5.75, according to a U.S. Department of Agriculture (USDA) report from Jan. 3.

The USDA cites a “significant outbreak of highly pathogenic avian influenza” in commercial egg-laying flocks throughout December as a key reason behind the high price. The USDA cites the avian flu, as well as a facility fire,  for the loss of some 40 million commercial egg-laying hens in 12 states: Arizona, California, Colorado, Iowa, Illinois, Michigan, Minnesota, Ohio, Oregon, Utah, Washington, and Texas.

Additionally, hen losses during the last two months of 2024 accounted for 43% of the total losses for the year, the USDA report said.

Grocery retailers are taking steps to limit egg consumption, with some placing unit limits per shopping trip, according to the USDA. Some grocers are also posting signs warning shoppers about the short supply of eggs.

While overall egg inventory increased by 5%, the national inventory of large-class eggs dropped by 1.5%.

California’s Proposition 12 is also affecting grocers. Proposition 12, which went into effect in 2022, requires hens to be kept in a cage-free environment. Some stores are telling shoppers that the current egg shortage is due to the cost of sourcing cage-free eggs, according to The Los Angeles Times.

The USDA states that as of December 2024, cage-free commitments require an estimated 66.7 billion cage-free eggs per year to meet 100% of demand from an estimated cage-free flock of just over 221 million hens. This indicates a shortage of over 121 million hens compared to the current non-organic cage-free flock of nearly 100 million hens.