Eggs, a staple in everyone’s baking or cooking routine, are used for preparing all types of foods. However, egg prices in Arizona have experienced an increase, which reflects on a national trend influenced by several key factors. As of December 2024, the national average price for a dozen Grade A eggs reached $4.15.
A significant contributor to these escalating prices is the widespread outbreak of avian influenza, specifically the H5N1 strain. Since January 2022, this virus has affected over 130 million poultry across all 50 states, leading to substantial killing to prevent further spread. This reduction in laying hens has shortened egg supplies, which elevates prices.
Despite the overall increase, Arizona consumers are currently paying less for eggs compared to residents in states like California, Florida, and Texas. For instance, at Fry’s/Kroger in Arizona, Eggland’s Best Cage Free Large White Eggs are priced at $4.39, but in Santa Clara, California, the same dozen costs $9.20 at Walmart.
The avian flu’s impact extends beyond retail consumers, significantly affecting small businesses that rely heavily on eggs. Bakeries and restaurants are struggling with increased operational costs due to the surge in egg prices. Some establishments have resorted to raising their prices, adjusting their menus, or seeking alternative ingredients to help the financial strain.
The economic result of soaring egg prices is also influencing broader inflation metrics. The Federal Reserve’s efforts to control inflation are being challenged by such supply shortages, as persistent increases in essential items like eggs can elevate consumer inflation expectations, potentially leading to wider price pressures across the economy.
In short, the surge in egg prices in Arizona and across the nation is primarily driven by the avian influenza outbreak, which has severely disrupted poultry populations and egg supplies. While Arizona’s prices remain comparatively lower than some other states, consumers and businesses are feeling the impact of this ongoing issue.