The White House press secretary, Karoline Leavitt, addressed the escalating cost of eggs during a recent briefing. She attributed the shortage to actions taken by the Biden administration, which directed the culling of over 100 million chickens due to health concerns. This move has significantly impacted the supply chain, leading to higher prices for consumers. The administration also acknowledged the broader economic factors contributing to inflation, including rising costs in groceries and fuel. Additionally, Leavitt emphasized the importance of confirming President Trump's nominees to address these issues effectively.

Factors Behind the Egg Supply Crisis

Leavitt highlighted that the current egg shortage stems from multiple factors, with one of the most significant being the mass culling of chickens ordered by the Department of Agriculture. This action was taken to prevent the spread of avian influenza, which has devastated poultry populations. The shortage has led to skyrocketing prices, with the average cost of a dozen eggs increasing by nearly 65% since 2024. Consumers are feeling the pinch, as grocery stores limit purchases and prices continue to rise.

In detail, the Highly Pathogenic Avian Influenza (HPAI) outbreak has been particularly damaging, resulting in the loss of over 20 million egg-laying hens in the last quarter of 2024 alone. This has severely constrained the supply of eggs, driving up prices to unprecedented levels. According to the U.S. Bureau of Labor Statistics, the average price of a dozen Grade A large eggs surged from $2.51 in December 2023 to $4.15 in December 2024. Some projections suggest that by the end of 2025, the price could reach nearly $5 per dozen, marking a record high. California has already seen prices exceed $9 per dozen in some regions, underscoring the severity of the situation.

Policy Responses and Economic Implications

To combat the crisis, Leavitt called for swift confirmation of President Trump's nominees, particularly Brooke Rollins for the USDA. She stressed that these appointments are crucial for addressing the shortage and stabilizing prices. The administration is also exploring ways to mitigate the impact on consumers, such as collaborating with economic advisors to develop strategies. Meanwhile, the data shows a decline in egg purchases, as consumers face limitations on how many eggs they can buy at once.

The economic ramifications of this shortage extend beyond just egg prices. Leavitt pointed out that the Biden administration's policies have contributed to broader inflationary pressures, affecting not only eggs but also other essential goods like bacon, groceries, and gasoline. Earnest Analytics reports a 28% year-over-year increase in egg prices in early January, reaching an average of $6.30 per dozen across top brands. This trend reflects a growing concern among consumers about the affordability of basic necessities. As the situation evolves, policymakers will need to find effective solutions to restore balance to the market and alleviate the financial burden on households.