Supermarket egg prices have soared since 2022, when a half-dozen budget eggs cost just £1. The dramatic inflation reflects a perfect storm of supply shocks, feed costs, and disease outbreaks hitting UK poultry farmers hard.
Avian flu has decimated laying hen populations across Europe and the UK, shrinking supply when demand remains constant. Feed prices spiked after Russia's invasion of Ukraine disrupted grain exports, forcing producers to absorb crushing input costs. Energy bills for heating coops and processing facilities also climbed steeply.
The timing hit consumers during a broader cost-of-living crisis. Budget eggs became a flashpoint for grocery inflation because they're a daily staple that shoppers notice immediately. When that £1 pack vanishes from shelves or doubles in price, people feel it.
Supermarkets face accusations of profiteering, though the economics are murkier than pure greed. Retailers operate on thin margins in eggs, using them as loss-leaders to draw customers in. But some chains have capitalized on supply scarcity to boost profits on other products and offset egg discounting.
Farmers themselves have suffered most. Feed costs and disease losses have squeezed margins to near-zero for many producers. Some have culled entire flocks after avian flu infections, facing months without income before restocking. The gap between wholesale prices and what consumers pay doesn't reach farms directly.
Prices have begun stabilizing as supply recovers, though they remain well above 2022 levels. The egg squeeze illustrates how vulnerable food systems are to external shocks. One disease outbreak or geopolitical crisis can ripple through supermarket shelves within weeks, hitting the most price-sensitive shoppers hardest.