The Rising Cost of Eggs and Its Impact on Food Banks

The recent surge in egg prices has placed significant strain on food banks across the United States, making it increasingly challenging for these organizations to meet the demand for affordable protein sources, particularly for low-income families. Krystal Kabela, who manages an eastern Iowa food bank, has noticed a sharp increase in inquiries about egg availability. "People know that the eggs come on Friday, so that makes Friday afternoons and Saturdays really busy days," she shared with Business Insider. The rise in egg prices has been the sharpest in over a decade, with the Bureau of Labor Statistics reporting a 15.2% increase from December to January, bringing the average price of a dozen Grade A large eggs to an all-time high of $4.95. This price spike has not only frustrated consumers but has also stretched the budgets of small businesses and safety net organizations that rely on eggs as a staple.

The situation is further complicated by the spread of avian influenza, which has drastically reduced egg availability. This shortage, coupled with high demand, especially during seasonal baking periods, has led to a perfect storm that shows no signs of abating in the near future. Food banks, which are already under immense pressure to provide for millions of low-income Americans who rely on them as a supplement to traditional grocery stores, are finding it increasingly difficult to stock eggs. Many have been forced to pivot to cheaper protein alternatives, such as canned meat and peanut butter, to stretch their resources.

The Role of Avian Influenza and Supply Chain Disruptions

The recent outbreak of avian influenza has been a significant contributor to the egg shortage, decimating poultry flocks and disrupting supply chains. This has led to a steep decline in egg production, which, in turn, has driven up prices. The situation has been exacerbated by the fact that eggs are rarely donated to food banks and are almost always purchased, making them a costly but essential item for these organizations. Food banks that once relied on regular donations from local farms are now finding it difficult to secure even a fraction of the eggs they once did, as many farms have been forced to reduce their output due to the outbreak.

The impact of the avian influenza outbreak has been far-reaching, affecting not only egg production but also the broader food supply chain. Many food banks have reported a sharp decline in egg donations over the past couple of years, leaving them with little choice but to rely on purchasing eggs at inflated prices. Krystal Kabela’s organization, for instance, now manages to stock only 450 dozen eggs per week, a quantity that barely lasts a few days. "Everybody wants them," she said, highlighting the versatility and essentiality of eggs as a protein source and a key ingredient in many recipes.

Strategic Shifts in Food Bank Procurement Amid Rising Costs

In response to the soaring prices, many food banks have been forced to adopt strategic shifts in their procurement practices. City Harvest, a New York City-based food bank, has paused all egg purchasing due to the rising costs. Instead, the organization has turned to stocking less expensive protein sources, such as peanut butter and ground beef. Similarly, the Rhode Island Community Food Bank has also halted egg purchases since December, citing the prohibitive cost of acquiring them.

The shift towards cheaper protein alternatives is a pragmatic response to the financial constraints faced by food banks. However, it also underscores the limitations of these alternatives in meeting the nutritional needs of the communities they serve. While shelf-stable proteins like canned tuna and peanut butter provide essential nutrients, they lack the versatility of eggs, which are not only a vital source of protein but also a key ingredient in many recipes, making them irreplaceable in many households.

The Broader Context of Food Insecurity in America

The egg affordability crisis highlights a broader issue of rising food insecurity across the United States. According to Feeding America, a nonprofit food bank network, approximately 50 million Americans relied on food banks for at least some of their meals in 2023. This represents a significant increase in food insecurity, with the national food insecurity rate rising by 38% since 2021. The rise in grocery costs, driven in part by the egg shortage, has only exacerbated the problem, making it more difficult for low-income families to access affordable and nutritious food.

The role of food banks in combating food insecurity cannot be overstated. While government programs like SNAP (Supplemental Nutrition Assistance Program) provide essential support to households living at or below the federal poverty line, many low-income Americans who do not qualify for SNAP rely on local food banks and pantries as their primary source of food assistance. These organizations play a critical role in bridging the gap between government support and the realidad needs of vulnerable communities. However, the rising costs of essential items like eggs are stretching these organizations to their limits, making it increasingly challenging to meet the growing demand for their services.

Challenges Faced by Food Banks in Addressing Demand

Despite their best efforts, many food banks are struggling to keep up with the demand for eggs and other essential items. Krystal Kabela’s organization, which serves approximately 1,000 households per week in-house and another 100 households through its mobile pantry service, has seen the number of egg donations dwindle significantly over the past couple of years. The 450 dozen eggs it can stock each week barely last a few days, leaving many families without access to this vital protein source.

The challenge is further compounded by the fact that eggs are rarely donated, meaning that food banks must rely on purchasing them at market rates. As prices continue to rise, many organizations are being forced to make difficult decisions about how to allocate their limited resources. For some, this has meant stopping egg purchases altogether. The Rhode Island Community Food Bank, for example, has seen the cost of a case of eggs rise from $16.50 in June 2024 to $61.50 in December, making it prohibitively expensive to continue purchasing them. "We will likely not have eggs on the shopping list for our agencies until the cost goes down some," said Kate MacDonald, the director of communications for the Rhode Island Community Food Bank.

The Human Cost of Rising Food Prices in Vulnerable Communities

The impact of rising egg prices is being felt most acutely by vulnerable communities, including low-income families, seniors, and individuals living with disabilities. For many of these individuals, food banks are a lifeline, providing access to essential groceries that they cannot afford elsewhere. The loss of eggs from their offerings is more than just an inconvenience; it represents a significant loss of a versatile and essential protein source that is difficult to replace.

"It’s challenging because eggs are such a versatile food item," said Krystal Kabela. "They can be used in everything from breakfast dishes to baked goods. There’s really nothing that can take their place." The loss of eggs from food bank shelves not only affects the nutritional quality of the meals these families can prepare but also adds to the sense of uncertainty and insecurity that many already experience. As one food bank patron noted, the rising cost of groceries has made it increasingly difficult to make ends meet, leaving many families to choose between paying for food and other essential expenses.

The ongoing egg shortage and the broader issue of food insecurity underscore the need for a comprehensive approach to addressing the root causes of hunger and food instability in America. While food banks play a vital role in providing immediate relief, long-term solutions must address the systemic issues driving these challenges, including poverty, lack of affordable housing, and unequal access to healthy and nutritious food. Until then, organizations like Kabela’s will continue to do their best to meet the growing demand, but the rising cost of eggs and other essential items is making their task increasingly difficult.