- Egg prices are high due to the bird flu.
- Avocados, already more pricy this year, may follow suit thanks to potential tariffs.
- Consumers are facing higher breakfast prices as a result.
Savor the taste of that avocado toast with eggs because it is about to get more expensive.
From avian diseases to tariffs, there are multiple forces at work driving the price increases on your breakfast.
In January, the price of eggs hit a record high at an average of $4.95 for a dozen, according to the US Bureau of Labor Statistics. The price of eggs rose in part because of the bird flu outbreak that has spread to dairy cattle and, in some cases, to humans. As a result, millions of birds have been killed, making eggs not just more expensive but also harder to find on the shelves.
Avocados are likely about to follow suit, though for different reasons.
Some 90% of the avocados consumed in the US come from Mexico, a nation that President Donald Trump hit with a 25% tariff on February 1. He later announced the tariffs would be delayed by a month, after which he may still impose them.
Tariffs are taxes on foreign goods imported to the US, and they prompt importers to raise their prices to compensate for the added tax and cover their bottom line. As a result, the consumer usually bears the brunt of the price increase.
Even pre-tariff, avocados, at an average of $0.91 each, were already 17% more expensive in the first week of February than they were during the same period last year, according to the US Department of Agriculture.
Gary Williams, an emeritus professor of agricultural economics at Texas A&M, said avocados are elastic goods, so people will buy them regardless of the price.
“A tariff on avocado imports is basically a tax on US avocado consumers and most tariff revenue would be paid by US consumers,” Williams told BI.
Price hikes on breakfast ingredients are already impacting consumers.
In New York City, customers are paying more for their breakfast sandwich, the beloved bacon, egg, and cheese. Waffle House customers, meanwhile, will face a $0.50 surcharge for each egg they order.
Though it’s uncertain how long disease outbreaks and trade wars will last, one thing is certain: some of our favorite breakfasts may soon feel more like luxuries than daily staples.
