California is experiencing one of its most severe egg shortages in recent memory. If you have struggled to find eggs on local shelves, you are far from alone. The current shortage began in 2024 and has continued well into 2025. Prices have spiked, and egg availability has become unpredictable, especially in large cities and rural grocery stores alike.
The main factors behind this shortage are both biological and regulatory. Most notably, a major outbreak of highly pathogenic avian influenza—commonly known as bird flu—has hit California’s poultry farms hard. For many, this has meant restricted grocery trips and higher food bills. You may even have noticed grocery stores putting limits on how many cartons you can buy at once.
Bird Flu’s Role in the Crisis
The bird flu outbreak is the single biggest reason why local egg supplies have plummeted. Starting in early 2024, farms in areas like Sonoma County, the greater Bay Area, and especially the Central Valley suffered massive losses. These counties account for a large portion of California’s commercial egg production.
To stop the disease from spreading, farms had to cull (remove and humanely kill) over three million egg-laying chickens and about a million broilers used for meat. This creates a gap in production that simply cannot be fixed overnight. Unlike some food shortages that resolve quickly, raising new flocks and waiting for them to mature takes time—often several months at a minimum.
If you rely on local eggs—especially from farmers’ markets or neighborhood grocers—the impact is even more direct. In some stores, eggs disappeared for weeks at a stretch. Even large chains had difficulty restocking.
Scale of National Poultry Losses
While California is seeing some of the worst effects, the problem is national. Since the bird flu outbreak intensified, around 36 million commercial table egg-laying hens have been lost across the United States by early August 2025. To put that in perspective, this figure represents a substantial chunk of the nation’s total egg-laying capacity.
About 15% of these losses happened in Arizona and California together. Although some states lost more hens by sheer numbers, California’s local laws mean that its losses hit harder for residents and small businesses. Depending on where you source eggs, you may also have noticed supply issues spreading to nearby states, as affected producers struggle to fill orders outside their usual areas.
Escalation in Egg Prices
Prices for eggs in California have more than doubled since early 2024. If you shop for eggs routinely, you’ve probably noticed that prices are far above what they were even a year ago. At one stage, wholesale cage-free eggs were selling for $8.65 per dozen. Organic eggs, which are often preferred by certain consumers, climbed as high as $9.39 per dozen in local markets.
By August 2025, prices have started to come down slightly, but California’s benchmark for large shell eggs remains $4.38 per dozen—well above where things stood before the outbreak. For comparison, eggs in some neighboring states are lower, but the difference is not always enough to justify cross-border shopping, given the time and fuel involved.
For many consumers and small food businesses, these elevated prices are not just inconvenient—they may require changes to recipes or even menu pricing. If you operate a bakery or café, the bottom line will feel the impact directly.
California’s Regulatory Influence
Another area to consider is California’s animal welfare regulations, which are some of the strictest in the country. The state banned conventional caged egg production, pushing for cage-free and organic eggs instead. On paper, this improves animal welfare and meets consumer demand for higher standards.
However, the reality is that recovery from a disease outbreak is slower when the existing infrastructure requires cage-free birds. Nearly 60% of bird flu cases in 2024 affected cage-free birds, which are the primary type allowed for in-state sales. If you are a producer or wholesaler, you need to be sure your operations comply with these laws before you can start rebuilding your flock.
This not only slows down the return to normal supply levels but also makes it harder to import eggs from out of state. Out-of-state producers must comply with California standards to supply local markets, adding time and cost to the recovery process.
Market Adjustments and Consumer Behavior
When supplies are tight, grocery stores and distributors have to make tough choices. Many retail outlets started limiting egg purchases per customer. You may have noticed “Only two cartons per person” signs at your local supermarket. This is an attempt to ensure more families have access but also reflects how strained the supply has become.
Some grocers increased prices, not only to cover costs but also to slow down purchasing and prevent shelves from being wiped out in a single morning. This strategy, while unpopular, is meant to keep at least some eggs available throughout the week.
Consumer responses vary. Some buyers are now shopping early in the day or visiting multiple stores just to secure one carton. Others are turning to egg alternatives or skipping them entirely. It’s vital to avoid panic buying, as this only worsens shortages and puts extra pressure on the system.
Industry Response and Adaptation
Egg producers, wholesalers, and retailers are reevaluating their supply chains in light of these disruptions. Many industry leaders are calling for stronger disease prevention measures and better coordination between local and national suppliers.
Depending on your role—grower, distributor, or restaurant operator—it is essential to keep documentation of your sourcing and compliance with animal welfare laws. Review these records annually or even quarterly, especially as rules can change following public health or animal disease events.
Food manufacturers and restaurants are also adapting, introducing menu flexibility or highlighting “eggless” options where possible. These changes help maintain business and consumer trust, even under strained supply conditions.
Future Outlook and Ongoing Challenges
Be prepared for ongoing uncertainty in the months ahead. Experts suggest the shortage may persist until poultry flocks are fully restored and the spread of bird flu is contained. Even then, supply chain bottlenecks and regulatory hurdles in states such as California mean it could be late 2025—or even beyond—before conditions stabilize.
Egg producers are working hard to rebuild lost capacity, but every new outbreak can reset the clock. Some experts warn, “There is no end that I can see,” reflecting the unpredictable nature of avian influenza and the pace of recovery needed for cage-free systems.
Another challenge is that neighboring western states, like Arizona and Nevada, are also seeing tighter egg supplies, making outside sourcing less reliable for California businesses. If you are a food entrepreneur, it is important to diversify suppliers wherever possible and communicate transparently with your customers about changing availability.
Local reliance on cage-free and organic eggs makes the issue even more pressing for California. Specialty products command higher prices but are also more at risk in supply crises, as seen in 2024 and 2025.
For ongoing updates, suppliers and entrepreneurs can monitor state agriculture bulletins, connect with trade associations, and consult business-focused news outlets such as RedWire Business. Staying informed helps you make better inventory and pricing decisions during extended disruptions.
Conclusion
California’s egg shortage shows how sensitive the food supply chain can be to both natural events and regulatory changes. Bird flu decimated local flocks, forcing millions of layers to be culled and sending prices sky-high. Animal welfare rules, which serve vital long-term goals, have slowed the state’s recovery, meaning tight supplies and higher prices are likely here to stay for a while longer.
If you are a consumer, small business owner, or food producer, you are not alone in dealing with these challenges. Simple strategies—such as shopping early, remaining flexible with menus, or staying updated on compliance rules—can help you manage the uncertainties. For now, patience and creative adjustment remain the best tools for getting through the shortage period.
Keep your sourcing documentation current, review your production and pricing regularly, and be transparent with your customers or clients about what to expect. Once flocks are rebuilt and the risk of new outbreaks subsides, we should see a gradual return to more stable egg supplies. Until then, planning and communication are your best defenses against uncertainty in the California egg market.