MW Egg prices have become a symbol of our economic fragility

By Quentin Fottrell

Why are eggs so important in our battle against inflation?

"Eggonomics" is rattling Americans.

The Justice Department has launched an investigation into the reasons for the surge in egg prices, the Wall Street Journal reported Friday, citing people familiar with the issue. Antitrust enforcers will focus on whether producers have conspired to hike egg prices.

The price of eggs has risen by 50% over the past year. The average cost of a dozen Grade A large eggs hovers at $4.95, up 240% from $1.46 five years ago. We grudgingly accept those kinds of price hikes with real estate, especially if we are homeowners. But eggs? Not so much.

They're a symbol of our economic fragility and - critically - a cheap source of protein and many other nutrients. The rise in egg prices and shortage in egg supplies unnerves consumers and makes us question the wider economic landscape. Soon, we want someone to blame.

Eggs are an "inelastic" commodity: as prices rise customers don't necessarily stop buying them; there are precious few alternatives. Economist Jason Lusk says a 1% rise in price only reduces demand by 0.15% and, if the supply falls by 1%, prices will rise by about 6.67%.

Such is the fascination with egg prices that some people are betting on the price of eggs. Others are investing in eggs or, more specifically, egg producers like Cal-Maine Foods CALM (CALM) and Vital Farms VITL $(VITL)$, in the hopes that prices continue to increase.

The rise in egg prices and shortage in supplies makes people question the economic landscape.

A staple in many other foods, from waffles, omelettes and cakes to ramen and pancakes, if the price of eggs continues to rise, so does the cost of all those other recipes. Psychologically, people seem to get more upset about eggs than, say, a Starbucks $(SBUX)$ coffee.

Eggs are now so valuable that they have been targeted by organized criminal gangs. Last month, 100,000 eggs worth an estimated $40,000 were stolen from a trailer in Pennsylvania. At current prices, that's roughly the equivalent to an American football's weight in gold.

They are fragile, have a short shelf life and difficult to import. It takes up to five months to raise egg-laying chickens. Paul Harrison, an Australian economist, has likened egg shortages to the panic over toilet paper during COVID. One obvious difference: You can stockpile toilet paper.

A shortage of eggs "serves as what psychologists call a 'heuristic,' a mental shortcut that shapes our broader perceptions," he wrote recently. "When something as mundane as eggs becomes difficult to obtain, it triggers a feeling that something is fundamentally not working."

The Trump administration last month announced a $1 billion plan to combat avian influenza, to protect the U.S. poultry industry and - in theory, at least - egg prices. But questions remain about the role of producers and retailers in the shortage of eggs, and spike in prices.

They are an integral part of the weekly grocery basket and a potent symbol, illustrating the threat of inflation to American household budgets. More than actual rotten eggs, overpriced eggs are a prime ingredient for politicians to throw shade at each other.

Rep. Kristen McDonald Rivet, a Democrat from Michigan, had this to say to the AP about egg prices: "When that is your day-to-day worry, the philosophical conversations about a constitutional crisis or the democracy is simply not a luxury you can afford."

There seems to be little hope, so far, that prices will go down anytime soon. The United Egg Producers, a trade group, blamed the outbreak on bird flu and said farmers are doing their best to fight against this deadly disease. Millions of birds have been euthanized as a result.

Eggs are an 'inelastic' commodity: as prices rise customers don't necessarily stop buying them.

America is obsessed with egg prices, but do we really know why they're so important? Here's a taster: one 52-gram egg contains 74 kilocalories, 5.2 grams in fat (only 1.7 grams of which are saturated), 70 milligrams of sodium and - drum roll, please - 6.3 grams of protein.

The average woman needs about 45 grams of protein a day, while the average man needs about 55 grams of protein. What's more, the average egg is rich in calcium, potassium and phosphorus, and trace amounts of copper, iron, manganese, magnesium, selenium and zinc.

Studies suggest eggs are connected to male sexual function and fertility, and a recent study in the British Medical Journal found they could be related to a lower risk of depressive symptoms. Eggs are also rich in a nutrient called choline, which has a role in early brain development.

Healthline says eggs "are among of the most nutritious foods on earth," pointing out that one large egg contains 9% of the recommended daily allowance (RDA) of vitamin B12, vitamin B2 (15% of the RDA), vitamin A (6% of the RDA), vitamin B5 and selenium: (22%).

Their power to focus attention in a fickle news cycle should not be underestimated.

It's little wonder, given their nutritional value, that people have been buying in bulk: In recent months, Costco $(COST)$ and Whole Foods imposed restrictions on the number of eggs customers can buy at one time. Kroger $(KR)$ reported that egg prices rose 70% during the fourth quarter.

Shortages hurt, whether it's baby formula in 2022 or eggs in 2025. "This, in turn, feeds into larger anxieties about inflation, the economy, the cost of living, and supply-chain vulnerabilities," Harrison, the economist, says. "It reinforces the growing sentiment that we are living in precarious times."

"The egg shortage won't last forever, but it is a symptom of a larger problem; one that will only become more pressing in the years ahead," he adds. "Climate change, resource depletion, and shifting economic structures will make certain commodities more volatile."

"The question is not just how we react to these shortages, but how we prepare for them," Harrison says. "There is no easy fix. But a meaningful first step would be acknowledging that we have been living in an era of extraordinary abundance; one that may not be sustainable."

Eggs, for now, represent an entitlement for working families, and their ability to focus people's attention in an often bewildering and fickle news cycle should not be underestimated. With Easter just around the corner, they are also associated with Christian rebirth and new life.

Just wait until they hit $5 a dozen.

Related: Trump's tariffs will take their toll on fresh fruit and vegetables

-Quentin Fottrell

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March 10, 2025 07:21 ET (11:21 GMT)

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