Commonwealth Policy Center

The average price of eggs in Kentucky is $4.51 per dozen. If you think that’s high, be grateful that you’re not in Hawaii, where a dozen eggs will cost you $10. So what’s going on? A deadly flu is spreading through U.S. chicken farms, wiping out an estimated 50 million laying hens so far. And the end of this avian flu isn’t yet in sight. Murray State agribusiness economics professor Jeffrey Young said, “In order for egg prices to decrease the disease has to be controlled.” But the problem is, this apparently hasn’t happened yet. Consider this a lesson in supply and demand. As supply decreases, prices go up. When the avian flu runs its course and chicken farms get back to full production, in our free market economy, that means prices will eventually drop.