Bird flu has sent egg prices flying, but are cage-free laws boosting prices too?

• Nine states have implemented cage-free egg mandates, raising egg costs due to higher capital investment and operational expenses. In Colorado, prices increased by up to 50%, while Nevada is rolling back its mandate due to affordability concerns.
• A major bird flu outbreak caused the death of 20 million egg-laying chickens, contributing to egg shortages.
• Egg prices have recently decreased to $4.15 per dozen, but with spring holidays approaching, prices are expected to rise again.

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Easter and Passover are around the corner, and high egg prices are threatening yearly traditions — that’s if shoppers can even find eggs on store shelves. It turns out there’s a one-two punch leading to egg issues, at least in certain parts of the country.

One factor is the major bird flu outbreak that continues to impact egg farms. This outbreak caused the death of 20 million egg-laying chickens in the last quarter of 2024 alone. It also led to less egg availability.

But the severity of its impact is now being questioned. The Justice Department has launched an investigation into whether egg producers are purposely limiting supplies in order to drive up costs.

How are cage-free laws impacting egg prices?

Another significant factor is cage-free laws, which ban the sale of eggs from confined hens in nine states: Colorado, Arizona, California, Massachusetts, Michigan, Nevada, Oregon, Utah and Washington. 

Animal rights advocates have long supported the transition to cage-free eggs. They emphasize that caged hens often endure overcrowded conditions.

However, it comes at a cost, with researchers at Michigan State University warning of financial implications in a 2023 study. The researchers said cage-free mandates could drive prices up even further, noting that cage-free facilities require approximately double the capital investment, specialized labor, more workers and additional feed compared to caged systems.

Since January, all eggs sold in Colorado must come from cage-free facilities, reportedly increasing prices by as much as 50%.

Nevada has already begun rolling back its cage-free mandate due to affordability concerns.

A USDA market report shows egg prices fell during the first week of March, with the average cost per dozen at $4.15. That’s about half of what it was just a few weeks ago.

But, with spring holidays coming up, prices may likely spike again.

Bird flu, making the jump to sheep?

Separately, the U.K. has also announced that bird flu has been detected in sheep for the first time in the world, increasing concern over the potential impact of the spread of the disease.

The chief executive of the U.K.’s National Sheep Association, which represents British sheep farmers, said the case did not threaten food safety.

There’s no word on whether fears over the case will lead to an increase in lamb shank prices ahead of Passover.