U.S. Faces Egg Crisis as Prices Soar, Smuggling Increases

The United States is currently grappling with an egg crisis, marked by soaring prices, supply shortages, and a rise in smuggling activities. At the heart of the issue is a severe outbreak of highly pathogenic avian influenza (HPAI), which has led to the mass culling of laying hens nationwide, severely disrupting the egg supply chain.

Egg prices surge across the U.S., leading to increased smuggling and supply concerns.

Egg Prices Skyrocket Amid Supply Shortages

Egg prices have surged dramatically, with reports indicating increases ranging from 53% to over 100% compared to the previous year. This sharp spike has placed a heavy burden on households, restaurants, and food manufacturers, many of whom rely on eggs as a staple ingredient.

In response to the crisis, some grocery stores have imposed purchase limits, while certain restaurants have introduced temporary surcharges on egg-based dishes. Additionally, state-level governments are adjusting regulations to ease supply constraints. In Nevada, for example, the governor has lifted certain hen housing restrictions to encourage more egg production within the state.

Surge in Egg Smuggling at U.S. Borders

The steep rise in egg prices has led some consumers to seek alternative and, in some cases, illegal means to obtain eggs. There has been a notable surge in egg smuggling attempts at U.S. borders, particularly at crossings between the United States and Canada.

• The San Diego Field Office has reported a 158% increase in intercepted egg smuggling attempts since the 2024 fiscal year.
• At the Detroit-Windsor border, smuggling incidents have risen by 36% compared to the same period last year.

These statistics highlight the desperation of individuals looking to circumvent high domestic egg prices by bringing in eggs from Canada and Mexico, despite strict U.S. import regulations.

Trade Disputes Could Worsen the Crisis

The situation is further complicated by ongoing trade tensions between the United States and Canada. In response to U.S. tariffs on Canadian goods, Canada has announced countermeasures, including a potential 25% tariff on certain U.S. products, set to take effect on March 25, 2025.

These retaliatory tariffs could exacerbate the egg shortage by driving up the costs of poultry imports, affecting both egg and meat markets in both countries. The impact of these trade policies could extend beyond just eggs, further straining U.S.-Canada economic relations.

A Complex Challenge Requiring Urgent Solutions

The intersection of HPAI-induced supply constraints, smuggling activities, and international trade disputes presents a multifaceted challenge for policymakers and industry leaders. Addressing this crisis will require coordinated efforts from:

• Government agencies, to ensure biosecurity measures and stabilize domestic production.
• Retailers and food suppliers, to manage demand and prevent hoarding.
• Trade negotiators, to ease cross-border tensions and secure food supplies.

As the crisis unfolds, consumers, businesses, and policymakers must navigate uncertain economic conditions while working toward long-term solutions to restore stability in the U.S. egg market.