Egg prices across the United States have surged to their highest levels of the year, driven by widespread bird flu outbreaks and increased demand during the holiday season.

National wholesale prices for large eggs reached 4.07 US dollars per dozen on Friday, marking a dramatic increase from 1.1 dollars early this year, according to data from the US Department of Agriculture (USDA).

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The price surge, driven by the impact of highly pathogenic avian influenza on commercial egg layer flocks, has been particularly severe in coastal markets, with California and New York experiencing the most significant increases.

The industry has seen devastating losses in laying hens, with 36.8 million table egg layers lost across 12 states in 2024 alone due to bird flu and facility fires, according to the USDA, Xinhua news agency reported.

The timing of these losses has also been particularly concerning, with 38 per cent of total losses occurring since November 1, and 28 per cent in December, coinciding with the peak annual demand period for eggs.

Egg demand traditionally peaks during the holiday season when baking and cooking activities increase. The USDA noted that demand had strengthened as consumers finalised their holiday preparations, putting additional pressure on an already strained supply chain.

Earlier this week, California Governor Gavin Newsom had declared a state of emergency in response to the outbreak of Avian influenza A (H5N1), commonly known as bird flu, which has infected 34 people in the Golden State.

According to the governor’s office, this action came on Wednesday as cases were detected in dairy cows on farms in Southern California, “signaling the need to further expand monitoring and build on the coordinated statewide approach to contain and mitigate the spread of the virus.”

To date, no person-to-person spread of bird flu has been detected in California and nearly all infected individuals had exposure to infected cattle, a press release from the office said, adding the state had already established the largest testing and monitoring system in the country to respond to the outbreak.

As of Wednesday, the H5N1 virus had spread in 16 states among dairy cattle, following its first confirmed detection in Texas and Kansas in March 2024, data from the US Centers for Disease Control (CDC) showed.

Bird flu was first detected in the US in the wild bird population in South Carolina in January 2022, and in the wild bird population in California in July 2022.