Wisconsin small businesses navigate higher egg prices

Carl Kilgore owns BJ’s Restaurant, a popular breakfast spot in Wisconsin Dells.

Everything on his menu has eggs on it or in it. The cost of this staple ingredient hit an all-time high for his restaurant this week at $105 for a case, or 180 eggs.

“My profits and everything are based off of eggs costing 15 to 20 cents a piece,” Kilgore said. “Today, when I order them, they’re going to be about 58 cents a piece.”

Avian influenza has continued to take a toll on U.S. egg and poultry production since the virus started to spread in 2022. In recent months, it’s left businesses and consumers paying higher prices for what’s usually considered a low-cost protein.

A report from the U.S. Department of Agriculture shows the egg industry lost 38.4 million birds to avian influenza in 2024. Total egg production for the year was 5 percent lower than in 2021, the year before the current avian flu outbreak.

The losses, which include young birds needed to replenish egg-laying flocks, have led to increasing prices, starting in October and ramping up further in December. The USDA report shows the wholesale egg price benchmark in early January was nearly three times what it was in the same month last year.

Kilgore said he and other restaurant owners in the Wisconsin Dells area are constantly comparing egg prices and talking about where they might be able to get them cheaper. He’s avoided passing on the increased costs to his customers, but he said that may not be sustainable in coming months.

“If we see (egg prices) go too much higher, I would imagine I need to do something with my prices,” he said.

Egg-dependent businesses look for alternatives to cut back costs

Jen Barney, owner of Meringue Bakery in La Crosse, said she has seen wholesale or bulk-buying stores like Sam’s Club limit how many eggs a customer can buy. It’s forced her to make several trips to the store each week instead of one big purchase for her retail store and cake ordering business.

Barney said the higher prices have prompted her team to start thinking creatively about how to use fewer eggs in their recipes, turning to alternatives like flaxseed meal.

“We’re having these questions, like what would it look like if we substituted 25 percent flax eggs in this recipe? Could that help offset a couple hundred dollars a month?” Barney said. “This is not the time of year to be making like creme brulee, which is all eggs. I would absolutely avoid putting that on my menu right now.”

Barney said inflation has already raised the cost of other ingredients like chocolate, making the recent spike around eggs even more troubling for small businesses. She’s had to raise her prices twice in the past year, something she said is especially uncomfortable for small businesses.

“You care about what people think about your business, and you hope that people understand why you’re raising your prices, that you’re not just price gouging people,” she said.

Eggs are no longer a low-cost food option for people with limited income

The tighter supply of eggs at grocery stores and food distributors is also taking a toll on people with limited incomes. 

Erin Waldhart, executive director of WAFER Food Pantry in La Crosse, said eggs are often a staple for low-income people and can help stretch pantry items a little farther.

“Maybe you don’t have to use as much meat when you can substitute some of those eggs in there for the protein,” Waldhart said. “It’s a really accessible protein for seniors as well. It’s quick and easy, especially for people with limited abilities.”

She said buying eggs may now be more of a luxury for low-income families. She’s started thinking about how that could affect demand for certain pantry items that may need an egg or two to prepare.

Until recently, WAFER had been receiving donated eggs from a processor in a nearby community. Waldhart said the eggs were smaller than standard or slightly misshapen, so the processor wasn’t able to sell them.

“All of a sudden, the processor found somebody that was willing to buy those, and so the amount that we received dropped, and the availability became really irregular,” she said. “I imagine now, with the situation that we’re in, we won’t be receiving them at all.”

Waldhart said sourcing all of their items has become more difficult since the COVID-19 pandemic disrupted national supply chains. She said higher grocery store prices from inflation has caused a decline in community food drives and donated items. It also means WAFER is paying more for the items they do buy, which means forgoing perishable foods like eggs in favor of shelf-stable items like peanut butter or canned soups.