About 65% of Americans consider eggs a staple in their morning routines. However, this beloved choice may need to be reevaluated as the United States grapples with an egg shortage that has driven prices to skyrocket in January 2025. Let’s explore the reasons behind this egg crisis and what lessons we can learn from a supply chain perspective.
The egg shortage has been making headlines, primarily due to a devastating bird flu outbreak that has spread rapidly across the country leading to poultry farms losing over 20 million chickens around the country. This significant reduction together with a higher demand for eggs due to the holiday season led to a dramatic price increase. According to USDA In December 2024, egg prices soared by 36.8% compared to the same month in 2023, with projections indicating a further 20.3% increase in 2025.
As we navigate through this crisis, it becomes clear that the ripple effects of the egg shortage extend far beyond just rising prices at the grocery store. Businesses that rely on eggs—such as bakeries and restaurants—are scrambling to adapt, facing increased costs and limited availability. The question arises: how can something as seemingly small as a chicken egg reveal the fragility of your business?
And most importantly, how can businesses rethink their supply chain strategies to be better prepared for such unforeseen events?
Respond to change
Once a disruption has taken place, response management comes into play. This agility is fostered by response management systems that enable businesses to pivot quickly in the face of challenge - such as current egg shortage and respond effectively to the ongoing disruption. With a robust response management strategy, companies are better equipped to navigate uncertainty and maintain operational continuity, ensuring they can meet customer demands even in turbulent times.
Increase transparency
To sense and mitigate disruptions before they occur, businesses need solutions that enable them to anticipate unforeseen events. This is where increased visibility and transparency across the business becomes essential. By enhancing transparency across all processes, businesses can not only manage their resources efficiently but also identify possible disruptions early before they escalate, enabling swift optimization of resources and the implementation of the best solutions.
Improve Demand Forecasting
Demand spikes can occur due to different reasons be it a social media trend, change of the season or any other event. No matter what, businesses need to be prepared for peaks and troughs in demand in order to be ready to meet customers’ expectations. By proactively identifying vulnerabilities in their supply chains and implementing strategies to mitigate risks, businesses can not only overcome challenges but succeed in the face of unforeseen events.
AI itself as a tool holds significant potential for predicting events and facilitating strategic decision-making. By integrating AI into their planning processes, businesses can enhance their ability to navigate the challenges and make better informed decisions in face of any disruptive event.
This ongoing egg shortage serves as a reminder of how interconnected our business and supply chains are and how vulnerable they can be to disruptions, especially when you don’t predict them happening. However, with the right strategies and business solutions in place, businesses can not only mitigate the impact of such disruptions but also anticipate and navigate challenges and opportunities more effectively.
