The Avian Flu, Cage-Free Laws, and a Market in Flux Are Making Eggs Pricier Than Ever

Regular grocery shoppers have certainly noticed a sharp increase in egg prices in the past several months. According to the Bureau of Labor Statistics, the cost of a dozen large Grade A eggs reached $4.15 in December — a staggering rise of nearly 37% over the past year, as measured by the Consumer Price Index.

Experts say several factors have fueled this price surge, including inflation, supply chain disruptions, severe weather, and, most notably, avian flu. The U.S. Department of Agriculture estimates that more than 136 million hens — or roughly 8% of egg-laying hens — died this fall due to the virus.

These combined challenges have resulted in empty dairy shelves across various grocery stores, with some even imposing limits on egg purchases. In addition to these shortages, consumers in certain states are also facing higher costs due to new cage-free regulations, which increase overhead costs for egg producers.

Nine states — Arizona, California, Colorado, Massachusetts, Michigan, Nevada, Oregon, Utah, and Washington — have enacted cage-free laws banning the sale of eggs from confined hens, a practice that has long been widespread in the United States and around the world. Rhode Island, which passed House Bill 7456 seven years ago, plans to join them in 2026. These regulations promote cage-free egg production, which ensures hens have space to roam and flap their wings. While this setup can be entirely indoors, it must provide adequate space and often includes outdoor access for the birds.

For instance, Michigan’s new law took effect on January 1, following a 2019 signing by Governor Gretchen Whitmer. The delayed implementation gave producers and retailers ample time to adjust. Nationally, about 40% of eggs sold are now cage-free, driven by demand from major food chains such as McDonald’s and Arby’s.

Animal rights advocates have long supported the transition to cage-free eggs, emphasizing that caged hens often endure overcrowded conditions, with up to nine birds confined together, lacking fresh air or water.

However, the shift to cage-free production comes at a cost. Researchers at Michigan State University warn of significant financial implications for consumers. “Adding these cage-free mandates and pledges to the mix could drive prices up even further, a burden that could be particularly detrimental to lower-income groups,” they stated in a report. 

The researchers noted that cage-free facilities require approximately double the capital investment, specialized labor, more workers, and additional feed compared to caged systems. Furthermore, there are risks. “Cage-free production also introduces additional variability and risk into the production system, including more intensive disease, manure, and better ventilation,” the report said.

It’s clear, however, that cage-free hens are not solely to blame for bird flu. The USDA reports that the virus impacts wild birds, commercial flocks, and backyard hens alike, with outbreaks recorded in 606 U.S. counties.

As producers grapple with the spread of avian flu and the transition to cage-free production, the question remains: How long will it take for egg prices to stabilize and flocks to recover? For now, it seems the high cost of eggs will persist a while longer.