MSU Extension Poultry

Understanding the Rise in Egg Prices Due to Bird Flu Outbreaks

One of the main factors driving the recent increase in egg prices is the spread of Highly Pathogenic Avian Influenza (H5N1), also known as the bird flu. This strain has been more active recently, with its spread linked to the migratory patterns of wild birds. Waterfowl, such as ducks and geese, are natural carriers of the virus. These waterfowl can unknowingly transmit the disease to domestic poultry during migration, often without showing symptoms. The virus typically spreads from wild birds to farmed birds through contaminated feed, water sources, clothing or equipment. Implementing good management practices is critical to preventing outbreaks. The bird flu virus spreads rapidly and is devastating. If bird flu is detected in a flock of any size and scale, the entire flock must be humanely euthanized as part of the disease response plan, to contain the disease and prevent it from spreading to other flocks.

Since the beginning of the bird flu outbreak in 2022, the U.S. Department of Agriculture (USDA) reports that over 1,400 poultry flocks in all 50 states and Puerto Rico have been impacted. This includes both large commercial farms and small flocks owned by individuals. Ohio, the second-largest egg-producing state in the U.S., has been hit particularly hard, with over 10 million birds being euthanized since the virus started spiking in late December 2024. Many of these birds were egg-laying hens, commonly referred to as "layers" in the poultry industry. Iowa leads the nation in egg production, while California ranks tenth. Together, they account for 38% of the flocks affected and humanely euthanized due to bird flu.

In a commercial farm, where birds are often housed in large-scale facilities, the virus can spread quickly, leading to significant animal mortality. For example, a flock of 20,000 layers can generate approximately 117,600 eggs in a week. If the flock must be humanely euthanized due to bird flu, those eggs will not reach the supply chain to be available in grocery stores.  Nearly 100 million egg-laying birds have been affected since the beginning of the outbreak in 2022, which means approximately 5.8 million eggs per week have not been produced.

When bird flu is detected, birds from the flock are humanely euthanized and the farm must undergo thorough cleaning, disinfection, and a mandatory idle period of at least 14 days. During this period, birds are not allowed in the barn, and this restriction is often extended for additional virus surveillance. Afterward, a new flock of laying hens needs time to reach maturity and begin producing eggs, which can take up to six months. This extended timeline contributes to significant delays in restoring normal egg supply levels to the market.

Other factors are also driving up egg prices. First, egg consumption typically rises during winter months, which increases demand. Second, beginning January 1, 2025, new cage-free laws went into effect, such as those in Michigan, which require hens to be raised in more spacious, open environments. While these cage-free systems are intended to improve animal welfare, they come with higher operational costs for farm producers. Maintaining these more spacious systems is more expensive, which leads to higher prices for consumers.

Although bird flu poses a minimal risk to humans, with only 68 reported human cases since 2024—most of which were in California and linked to dairy cattle, which can also contract bird flu—it is important to emphasize that properly cooked eggs and meat are safe to consume. There is no risk of transmission through pasteurized milk or properly prepared and cooked poultry products.

As spring approaches, coinciding with the migration of wild birds, risks of new outbreaks can continue impacting the agriculture industry. To help prevent the spread of the disease, people who keep poultry should follow good management practices. If you keep backyard chickens, it’s recommended to keep them in coops or confined areas to minimize contact between domestic and wild birds, and to implement strategies such as having dedicated footwear worn only while caring for animals, washing hands before and after working with animals, and regularly cleaning and disinfecting animal housing and equipment.

Reporting Possible Cases

For Domestic Animals:

Bird owners should watch for sudden deaths in their flocks, reduced egg production, decreased water intake, diarrhea, coughing, or other signs of illness. If you suspect bird flu, contact the Michigan Department of Agriculture and Rural Development (MDARD) at 800-292-3939 during regular hours or 517-373-0440 after hours.

For Wildlife:

If you encounter unusual deaths in wild birds or other wildlife, report it to the Michigan Department of Natural Resources (DNR) through their Eyes in the Field app (select the "Diseased Wildlife" option) or by calling the DNR Wildlife Disease Laboratory at 517-336-5030.