Eggs are an important part of the American diet. In home kitchens, people use the versatile ingredient in everything from breakfast omelets to tempting desserts. The egg also serves as a key component in many bakery and snack recipes, delivering benefits that are functional, nutritional, flavorful, and more. While the ongoing avian flu epidemic has had a significant negative impact on civilians and producers alike, creating shortages, and sending prices into the stratosphere, the egg industry is keeping a close eye on the situation and working to bring the crisis to an eventual end.

To explore the challenges facing the egg market, how stakeholders are dealing, and look at the industry response, Snack Food & Wholesale Bakery checked in with Chef Nelson Serrano-Bahri, director of innovation with the American Egg Board.

Jenni Spinner: It’s been an interesting year for the egg industry—could you please share an overview of the landscape and the factors impacting it (i.e. avian flu, inflation, tariffs, etc.)? Feel free to talk about the effects on egg producers as well as food producers like bakers and snack makers.

Nelson Serrano-Bahri: No doubt, this has been a year full of complexity and resilience for America’s egg industry. We’ve continued to manage the prolonged impacts of highly pathogenic avian influenza (HPAI), which first hit U.S. flocks in early 2022 and has now stretched well into 2025. Over 130 million egg-laying hens have been lost since the start of the outbreak, which has affected both shell egg and egg ingredient supplies across the board. 

On top of impacts from HPAI, inflationary costs and global trade dynamics have put additional pressure on the entire supply chain. Food producers—from large-scale bakers to start-up snack makers—have felt the crunch, especially in managing volatility in ingredient pricing and availability.  We understand it has been frustrating for everyone involved, including our farmers. Rest assured, our egg farmers are working around the clock to protect their flocks, rebuild inventory and ensure steady, safe supply—there’s a tremendous amount of dedication behind the scenes.

JS: How are things looking now, as we’re talking? How has the situation improved, are there still rough patches, and how are producers rolling with the punches?

NSB: There are signs of stabilization, which is very encouraging. The rate of outbreaks on egg farms has been significantly less since the beginning of March. In addition, we’ve seen a significant rise in the amount of imported eggs since February. These are a couple of the factors that have led wholesale shell egg prices to fall by more than 50%, as of early May. 

That said, we’re not fully out of the woods. Recovery takes time, and producers are staying vigilant. We need a sustained period with minimal outbreaks for production and the supply chain to recover and get back to more normal levels. While there is no instant solution, egg farmers have invested in strengthening biosecurity measures and are committed to accelerating repopulation of flocks, to help in this effort. 

JS: Despite the various challenges facing egg producers and your commercial customers, eggs are still an ingredient of choice in bakery ingredients. Could you please talk about some of the roles egg plays in bakery recipes, and the benefits real egg offers in those roles?

NSB: In bakery applications, eggs are indispensable—not just as a staple ingredient, but for their unparalleled functionality. Eggs offer a unique, irreplaceable set of benefits that are tough to replicate with a single alternative. They provide aeration and leavening, giving products like cakes and muffins their volume and lightness. They bind ingredients together, which is essential for structural integrity in items like cookies and bars. Eggs also contribute to moisture retention, color development and mouthfeel. From a clean-label perspective, real eggs offer a natural, single-ingredient solution that performs multiple functions without the need for long ingredient decks. It’s hard to find that kind of versatility with any other single ingredient.

JS: I know you don’t have a crystal ball, but how do you see the egg supply chain faring in coming months? Please share any concerns, as well as reasons for optimism down the road.

NSB: We’re cautiously optimistic. Over the last few weeks, we’ve been seeing wholesale prices begin to stabilize, and we expect both supply and pricing to continue moving in that direction—assuming current conditions hold. Egg farmers are grateful for the plan which the USDA and Secretary Rollins put forward earlier this year to support fighting the virus and rebuilding the supply chain. Egg farmers have implemented rigorous biosecurity measures, and we’re starting to see those efforts pay off. The recent influx of imported eggs has also provided some relief, particularly for the ingredient market. If this trajectory continues, we could see further normalization through the back half of the year. 

That said, the disease is still the wildcard—it doesn’t follow a predictable timeline. But we’re better prepared, more adaptive and equipped with lessons learned from this extended outbreak cycle.

JS: Any other observations, advice, or AEB resources you’d like to share?

NSB: One of the key things I’d want food manufacturers and R&D teams to know is that the American Egg Board is here to help. We can be your go-to for the latest information and have several resources for manufacturers and beyond available at incredibleegg.org. 

Through our Eggcelerator Lab, AEB’s innovation engine, we offer custom technical support, formulation assistance and ideation sessions tailored to the needs of commercial partners. Whether you’re looking for ways to optimize formulations, troubleshoot challenges, or create the next big thing in baked goods or snacks, we’re ready to roll up our sleeves with you.

JS: Do you have a favorite bakery good that incorporates eggs?

NSB: I have a soft spot for custard-based desserts like crema Catalana, flan, crème brûlée, and pastries filled with pastry cream—these dishes truly highlight the versatility of eggs in bakery goods. Eggs play a vital role in achieving that perfect balance of texture, richness, and structure that is so integral to custards. They provide that luscious, smooth mouthfeel and help create the delicate, creamy textures that make these desserts irresistible.

In terms of trends, custard-filled pastries and other egg-heavy baked goods are aligned with the growing demand for indulgent yet classic comfort desserts. Egg-based recipes are experiencing a resurgence, particularly in items like rich breakfast pastries, tarts, and even soufflés. In the current bakery landscape, eggs are essential not just for texture but also for flavor development, contributing to golden, crisp exteriors and moist, tender interiors. With consumers increasingly seeking products that are both familiar and comforting, egg-centric creations are not only timeless but essential to satisfying that demand.

Related: Bird flu epidemic takes its toll on U.S. egg supply