Egg prices in the U.S. have nearly doubled since this time last year. In East Lansing, Michigan, a dozen Grade A large eggs at Meijer cost about $5. Once considered an affordable protein staple, eggs have become a symbol of inflation and economic challenges. The primary driver of these price hikes is the bird flu (H5N1), which has led to significant disruptions in poultry farming and consumer uproar.

The H5N1 outbreak first began in 2022, spreading through seasonal migrations of wild birds and infecting poultry and dairy operations across several states. Mass culling efforts were implemented to contain the highly pathogenic virus and prevent further transmission. As a result, production slowed, causing a temporary spike in egg prices in 2022, followed by a dramatic surge in 2024.

However, Michigan’s recently implemented Cage-Free Egg Law may also contribute to statewide price increases (“MCL – Section 287.746 – Michigan Legislature”).  Enacted on Jan. 1, the law mandates that chicken farms adopt cage-free housing systems for their hens to sell eggs in the state. The new requirements include infrastructure upgrades that provide hens with at least one square foot of space and facilities allowing them to roam freely, including employee standing headspace. In 2020, only 29% of Michigan’s egg production relied on caged systems, compared to the current full phaseout.

For those opposed to the law, studies highlight the potential benefits of removing cage-free requirements. According to MSU researchers, producers estimate an 8-19% rise in production costs due to the cage-free requirements. 

Cage-free systems are perceived as less cost-effective and environmentally friendly compared to traditional cage systems. Additionally, most consumers are not motivated by the distinction between cage-free and caged eggs. Higher prices could discourage purchases, further straining producers already impacted by the bird flu. Removing cage-free requirements could increase egg availability and affordability, easing financial pressure on struggling families.

For those in favor of the law, past examples have demonstrated its proven benefits. Caged systems are notoriously cramped and inhumane, restricting chickens’ natural behaviors. The Cage-Free Egg Law represents progress for animal health and welfare in the U.S. 

States like California, Colorado and Massachusetts have successfully implemented similar laws, providing a model for Michigan. Michigan passed its own Cage-Free Egg Law in 2009 and reaffirmed it in 2019, with implementation set for 2025. As noted by dairy farmer and State Rep. Jerry Neyer, “Egg producers had 15 years to adjust to the cage-free law, so that cost was already built in a long time ago; it’s not the reason for the high prices.”