Egg prices in California reach $9 per dozen in some areas

The price of a dozen eggs in California has reached nearly $9 per dozen in some areas, as demand continues to rise amid an outbreak of highly pathogenic avian influenza, or bird flu.

In its overview of egg markets last week, the U.S. Department of Agriculture (USDA) said the California benchmark for large shell eggs rose $0.78 to $8.97 per dozen, due to a reduction in supply.

Those prices can be seen when shopping online for eggs at supermarkets across the state.

For instance, Walmart in Chico, California, on Tuesday night listed an 18-count carton of Great Value Cage-free Large White Eggs for $9.52, while a dozen of the same type of eggs from Great Value were listed at $7.22.

EGG PRICES ARE HIGHER AND WILL CONTINUE INTO 2025

At Safeway in the same city, an 18-count carton of Lucerne Farms Eggs Cage-Free Large White Eggs was listed for $12.99, though a dozen was not listed for sale on the retailer’s website.

Walmart and Safeway's parent company Albertsons did not immediately respond to FOX Business' request for comment on the price of eggs.

"Demand for shell eggs posted a slight rise into the last two weeks of the year, supported by concerns over tight supplies due to persistent outbreaks of highly pathogenic avian influenza (HPAI) in layer flocks," the USDA wrote. "These flock losses, coming at a critical demand point, have driven wholesale prices past the record levels set in December 2022 when HAPI outbreaks had a similar impact on the market."

The FDA also reported this week that egg production in the U.S. dropped 4% in November as the price of eggs and cases of bird flu continue to rise across the country.

HERE'S WHY GROCERS ARE REALLY RAISING PRICES

Wells Fargo Agri-Food Institute Sector Manager Kevin Bergquist said egg prices have been elevated since 2023 due to the combination of seasonal price increases during the holidays and disruption in egg supply due to bird flu.

Prices over the past year have "generally" remained above 2023 prices and even "often exceeded egg prices from 2022, which was when HPAI really caught the egg market," according to Bergquist. 

Wholesale egg prices, which jumped nearly 55% in November, do not necessarily reflect consumer egg prices at the grocer, which can vary widely. 

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According to the Consumer Price Index, grocery prices rose 0.5% in November, with four of the six major grocery store food groups rising in cost. Eggs showed the largest increase by a wide margin. 

Prices for meat, poultry, and fish rose 1.7% in November, but prices for eggs rose 8.2%. 

Prior to the large bird flu outbreak in March 2022, flock numbers were at a level that supported lower egg prices, according to Bergquist. He noted the wholesale price was less than $1.50 per dozen. 

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However, the outbreak disrupted the market, leading to record egg prices in December 2022. The average price corrected to a lower level by 2023 as producers rebuilt their flocks. 

FOX Business’ Daniella Genovese contributed to this report.