White House Press Secretary Karoline Leavitt responded to an inquiry on rising egg prices by blaming the prior administration. Leavitt was correct when she stated that the Department of Agriculture was directed to kill over 100 million chickens, leading to a mass shortage. Prices steadily rose throughout Biden’s term, as an average dozen cost only $1.60 in February 2021.
Egg prices increased by 20% to $1.93 during Biden’s first year in office. We saw the avian flu outbreak in 2022, which along with other factors brought egg prices up another 30% on a yearly basis to $2.51. Egg prices continue to rise in 2023, reaching around $3.50 per dozen during February but slightly decreasing by year-end of $2.50. We saw egg prices surge significantly by 60% from 2023 to 2024. The Agriculture Department believes that egg prices will rise by another 20.3% in 2025.
As reported by the USDA:
“Retail egg prices increased by 8.4 percent in December 2024 and continue to experience volatile month-to-month changes. An outbreak of HPAI that began in 2022, with recent detections in January 2025, contributed to elevated egg prices by reducing the U.S. egg-layer flock. HPAI continued to drive egg price increases in 2024. Egg prices in December 2024 were 36.8 percent higher than in December 2023 but still below peak prices in January 2023. Egg prices are predicted to increase 20.3 percent in 2025, with a prediction interval of 0.1 to 45.3 percent.”
The bird flu is certainly a main factor here. The USDA stated that 108 million chickens have died since 2022, but an additional 13 million have died in recent MONTHS. The Animal Health Protection Act permits the USDA the authority to kill off infected herds and flocks. The Centers for Disease Control and Prevention claim that chickens have at best a 10% survival rate after contracting the bird flu.
Culling has been a standard practice that cannot be avoided if we are to believe the flocks were indeed infected. Alarmingly, bird flu has been detected among cattle and depopulation efforts are underway, which will raise the prices of milk and beef. The USDA believes milk prices, which are already up 11.7% on the yearly, will rise by an additional 1.3% in 2025. Beef prices, up 4.9% annually, are expected to rise by 1.5%. Food prices have been on the rise for years, and I have long warned to stockpile food in case of supply shortages.
Our models do not indicate that food inflation will ease in 2025. In fact, I have repeatedly warned that people may want to stockpile food for the next two years as there will be weather events and supply chain shortages. Our model warns that we may see another severe drought, probably between 2025 to 2027, in both the US and Canada. The drought conditions are already beginning, which is in line with our model, which warns it will expand into 2025-2027.
