Colorado residents are grappling with a significant surge in egg prices, a trend that mirrors a nationwide escalation attributed primarily to the ongoing avian influenza outbreak. This situation has led to increased costs and limited availability of eggs across the state.
Avian Influenza’s Impact on Egg Supply
The United States is experiencing its most severe outbreak of Highly Pathogenic Avian Influenza (HPAI) to date. Since its onset in February 2022, the virus has affected over 150 million birds nationwide, with Colorado being notably impacted. The state has seen the culling of nearly 2 million egg-laying hens to contain the virus’s spread, drastically reducing local egg production.
The U.S. Department of Agriculture (USDA) reports that as of December 2022, egg inventories were 29% lower than at the beginning of the year, underscoring the profound effect of HPAI on the national egg supply.
Economic Ramifications and Rising Prices
The depletion of egg-laying flocks has led to unprecedented price hikes. In January 2025, the national average retail price for a dozen large grade-A eggs reached $4.95, more than doubling from the previous year.
barrons.com In Colorado, consumers have reported empty shelves and escalating prices, reflecting the strain on supply chains.
Major retailers, including Walmart, Kroger, and Aldi, have responded by imposing purchase limits to manage the scarcity. Additionally, restaurants like Waffle House have introduced surcharges to offset increased costs.
Legislative Factors Influencing the Market
Beyond the avian flu, legislative measures are also affecting egg prices in Colorado. House Bill 20-1343, enacted in 2020, mandates that all eggs sold in the state be sourced from cage-free facilities by 2025. While this law aims to improve animal welfare, it has prompted producers to invest in new infrastructure, contributing to higher production costs.
However, industry experts emphasize that the current price surge is primarily due to the avian flu’s impact rather than the new cage-free requirements. The Colorado Egg Producers association clarified that the recent shortages and price increases are driven by the avian flu, not the incoming state law.
Broader Economic Context
The egg market’s volatility is occurring amidst broader economic challenges. The U.S. inflation rate unexpectedly rose to 3% in January 2025, influenced by increased prices in various sectors, including food and energy. The Federal Reserve has indicated that it may maintain current interest rates to manage inflationary pressures.
Looking Ahead
The USDA has adjusted its egg price forecast to $4.44 per dozen for 2025, reflecting ongoing supply challenges. Efforts to contain the avian flu continue, with the USDA implementing measures to protect livestock health and mitigate the virus’s spread.
Consumers are advised to anticipate continued fluctuations in egg prices and availability as the industry navigates these challenges. Staying informed through official channels and supporting local producers can help mitigate the impact on households across Colorado.