Are michigan consumers ready for the spike in egg prices?
- Cage-free egg laws in Colorado and Michigan are set to drive up prices for consumers starting in 2025.
- The ongoing bird flu outbreak has led to a significant reduction in the number of hens available for egg production.
- Consumers and retailers are already experiencing price increases and shortages due to these combined factors.
In 2025, a new law in Colorado mandates that all eggs sold in the state must come from cage-free facilities. This legislation has been in development for several years, with regulations aimed at improving the welfare of hens by prohibiting their confinement. While proponents of the law hope for positive animal welfare outcomes, the economic ramifications have raised concerns among consumers and grocery retailers alike. Currently, prices for a dozen eggs have surged to approximately $4 in Colorado, a sharp increase from a national average of $1.79 just three years prior. This climb in egg prices can be attributed to a combination of factors. The primary driver is a significant nationwide egg shortage sparked by the ongoing impact of a bird flu outbreak, which has resulted in the loss of millions of hens across the United States. In Colorado alone, it is estimated that about 7 million hens have perished due to avian flu, severely impacting local egg production. Bill Scebbi, the executive director of the Colorado Egg Producers, emphasizes the pressing nature of the supply chain crisis, stating, "The supply of eggs aren't here because we don't have the hens." Inflation further complicates the issue, leading to escalating costs associated with egg production and distribution. Cage-free production is inherently more labor-intensive and costly, typically raising overall prices by about 15 to 17%. Despite the long preparation period, retailers and consumers are already feeling the pressure from the cage-free mandate, with many encountering both high prices and occasional empty shelves in stores. Supply chain disruptions are evident, as some shoppers report a stark drop in availability compared to prices they were familiar with just months ago, where a dozen eggs could be purchased for about $3.29. As Michigan prepares to implement a similar cage-free law in 2025, there is a palpable anxiety regarding the subsequent impact on egg prices as well. Many consumers in the state are bracing for further increases, and grocery managers are passing along these costs as they adjust their pricing strategies. Advocates for the law argue that the gradual implementation timeline should mitigate drastic price changes, but ongoing supply shortages challenge this assumption. With consumers caught between the ideal of humane animal treatment and the harsh reality of escalating food prices, the future of egg consumption in both Michigan and Colorado hangs in the balance as the agriculture industry navigates these turbulent waters.