OMAHA, Neb. — Egg prices have surged to unprecedented levels, with producers attributing the increase to the ongoing bird flu crisis. However, critics suggest that major corporations are capitalizing on their market dominance to reap substantial profits, burdening budget-conscious consumers. Advocacy groups, Democratic lawmakers, and a Federal Trade Commission member are urging a government inquiry following the average price of a dozen eggs hitting a historic high of $4.95 this month. While the Trump administration has unveiled a plan to address the bird flu outbreak, the impact on egg prices, a key factor driving inflation, remains uncertain.
Chickens are seen in a henhouse at Sunrise Farms in Petaluma, California. Getty Images
Senator Elizabeth Warren expressed concern, stating, “Donald Trump pledged to reduce food prices immediately, but as egg prices spiral out of control, he dismissed workers tasked with containing the bird flu. Families struggling with costs require urgent relief.” The egg industry and experts predominantly attribute the soaring prices to the bird flu epidemic, which has resulted in the culling of over 166 million birds. Approximately 30 million egg-laying hens have been lost since January, significantly disrupting egg supplies, with a total reduction of about 12% in the national egg-laying population. Despite the production of 7.57 billion table eggs last month, some consumers are encountering empty egg shelves at local stores.
Cashier Josh Jimenez ringing up eggs for sale at a grocery store in Dallas. AP
Farm Action suspects monopolistic practices, alleging that while egg production has only marginally decreased compared to the previous year, major corporations are enjoying substantial profits amidst the crisis. The Justice Department acknowledged receiving Farm Action’s appeal for an investigation but refrained from commenting. Concerns about the industry’s motives are amplified by a 2023 jury ruling that major egg producers had manipulated the domestic egg supply to inflate prices in the past.
Retail egg prices, which had long remained below $2 per dozen, have more than doubled since the outbreak began, boosting profits for producers amid rising costs. While most leading producers are privately held and do not disclose financial outcomes, the largest company, Cal-Main, ***
Cal-Maine Foods, a major supplier of approximately 20% of the nation’s eggs, publicly announced a significant surge in its profits. The company reported a whopping $219 million profit in the latest quarter, with its eggs fetching an average price of $2.74 per dozen. This marked a substantial increase from the mere $1.2 million profit recorded in the quarter preceding the onset of an outbreak in early 2022, during which eggs were sold for $1.37 per dozen.
Sherman Miller, the President and CEO of Cal-Maine, attributed the surge in market prices to the ongoing rise in demand, stating that market prices have continued to climb due to restricted supply levels of shell eggs caused by recent outbreaks of highly pathogenic avian influenza. Despite facing a few isolated outbreaks in facilities located in Kansas and Texas, the Mississippi-based company experienced a notable boost in egg sales, selling around 330 million dozens compared to 288 million the previous year. This uptick in demand can be attributed to the company’s strategic acquisitions.
In terms of production costs, economists and analysts caution against viewing the record egg prices as indicative of any illicit activities, suggesting that the short-term profits may be fleeting until farms are impacted. The process of slaughtering a flock and subsequently cleaning the farm and raising new birds to egg-laying age can be time-consuming, taking up to a year. While the USDA compensates farmers for each bird culled, it does not cover all the financial burdens incurred as farmers experience a loss in income.
Rising egg prices have also been influenced by inflation in feed, fuel, and labor costs, with farmers investing in biosecurity measures to prevent the spread of diseases. According to the U.S. Bureau of Labor Statistics’ producer price index, production costs have reached unprecedented levels. Analysts stress that the escalating prices are not a result of market manipulation but rather a reflection of tight supplies driving up prices through wholesale auctions. University of Arkansas agricultural economist Jada Thompson emphasizes that farmers are grappling with increased costs and are benefiting from higher prices due to the scarcity of supplies.
