While the US Department of Agriculture forecasts a 41% increase in egg prices for 2025, in a statement to Yahoo Finance, Diez-Canseco of Vital Farms indicated that the company does not intend to hike prices. “We are not engaging in short-term price manipulation in the market,” Diez-Canseco asserted in a video statement released on Friday.
He emphasized that current egg prices are exorbitant, and Vital Farms intends to adhere to its established model. “We are dedicated to building a long-lasting brand, which has led to consistent growth, positive gross margins, and profitability ever since our IPO,” Diez-Canseco explained. “This is quite uncommon for a small, rapidly expanding company like ours.”
Simultaneously, investors have shown keen interest in Cal-Maine Foods (CALM), the largest egg producer in the US supplying eggs to major retailers such as Walmart (WMT) and various private-label brands. Over the past year, Cal-Maine shares have surged by 55%, while Vital Farms stocks have seen an increase of approximately 80%.
David Trainer, the founder and CEO of New Constructs, highlighted the advantage of well-managed commodity businesses in times of rising commodity prices. “During periods of high prices, these businesses can generate significant profits,” Trainer noted in a prior conversation with Yahoo Finance.
The recent surge in egg prices and shortages can be largely attributed to the spread of highly pathogenic avian influenza, commonly referred to as bird flu. In response, United States Agriculture Secretary Brooke Rollins outlined a comprehensive five-part strategy to address avian flu outbreaks in an op-ed published by The Wall Street Journal.
Diez-Canseco expressed appreciation for the Trump administration’s commitment to addressing this issue through Rollins’s plan, suggesting that federal investments could aid American egg farmers in rejuvenating aging infrastructure vulnerable to the introduction of wild animals that may contribute to bird infections.
To tackle the ongoing challenges, national retailers like Costco (COST) and Trader Joe’s have imposed restrictions on the quantity of eggs each customer can purchase. Additionally, certain dining establishments including Waffle House and Denny’s (DENN) have introduced a surcharge on menu items involving eggs due to the nationwide egg shortage and escalating egg prices.
A spokesperson from Denny’s informed Yahoo Finance about the temporary surcharge for egg-containing meals, citing the nationwide egg scarcity and heightened egg costs as the reason. Furthermore, the Bureau of Labor Statistics (BLS) is set to release updated inflation data for February on March 12, offering insights into whether egg prices have continued to rise.
Brooke DiPalma, a senior reporter for Yahoo Finance, contributed to this article. For more updates on stock market news and in-depth analyses, visit Yahoo Finance’s website. Stay informed about the latest financial and business news by following @BrookeDiPalma on Twitter or reaching out via email at
