The cost of eggs has surged to record levels, with prices reaching an average of $4.95 per dozen this month, the Associated Press reports.
Egg producers attribute the spike to the ongoing bird flu outbreak, which has led to the culling of millions of egg-laying hens. However, critics—including advocacy groups, some lawmakers, and even a Federal Trade Commission (FTC) official—suspect that major egg companies are capitalizing on the crisis to boost profits. The situation has sparked calls for a government investigation into potential price gouging.
The egg industry and most agricultural experts point to the bird flu outbreak as the primary driver of rising prices. Since January alone, approximately 30 million egg-laying hens have been culled to contain the virus, contributing to a nationwide flock reduction of about 12%. The US Department of Agriculture (USDA) enforces strict measures that require entire flocks to be euthanized when the virus is detected, disrupting production.
“This has nothing to do with anything other than bird flu,” said Emily Metz, president of the American Egg Board. “Our farmers are in the fight of their lives, period, full stop. And they’re doing everything they can to keep these birds safe.”
Egg prices have surged in previous outbreaks as well. In 2022, when prices reached $4.82 per dozen, there were similar concerns about potential price manipulation.
Despite the clear impact of bird flu on supply, some consumer advocacy groups remain skeptical. Farm Action, a group representing small farmers and consumers, argues that while egg production has only fallen slightly—by about 4% from last year—prices have more than doubled.
“Dominant egg corporations are blaming avian flu for the price hikes that we’re seeing. But while the egg supply has fallen only slightly, these companies’ profits have soared,” said Farm Action president Angela Huffman.
These concerns are further fueled by historical precedent. In 2023, a jury found that major egg producers had previously manipulated supply to drive up prices in the 2000s. This has led to calls for renewed scrutiny of the industry’s practices.
The Justice Department has acknowledged receiving a request to investigate potential price gouging but has not commented further.
While most of the dominant egg producers are privately owned and do not disclose financial results, Cal-Maine Foods—the largest US egg supplier—has reported a dramatic increase in profits.
In the most recent quarter, Cal-Maine reported a $219 million profit, a significant jump from just $1.2 million in early 2022 before the outbreak. The average selling price of its eggs rose from $1.37 per dozen to $2.74 per dozen during that period.
Sherman Miller, Cal-Maine’s president and CEO, attributed the higher profits to increased egg prices due to supply constraints. He also noted that the company sold significantly more eggs—330 million dozen, up from 288 million the previous year—due to strong consumer demand and recent acquisitions.
Unlike some other producers, Cal-Maine has experienced relatively few bird flu outbreaks, with only a handful of affected facilities in Kansas and Texas.
While some question the motives of major egg producers, industry analysts point to broader economic factors at play. The costs of feed, fuel, labor, and biosecurity measures have all risen, putting additional pressure on farmers. The US Bureau of Labor Statistics’ producer price index shows that production costs are at an all-time high.
“The consumer, I think, will probably feel like they’re getting the rough end of the stick. But I guarantee you, the farmers that are having to depopulate the barns, they’re having a rougher time,” said CoBank analyst Brian Earnest.
Experts argue that while egg producers are benefiting from higher prices, this is largely due to tight supply rather than deliberate market manipulation.
“This isn’t a case where they’re taking the price up to gouge the market,” said Jada Thompson, an agricultural economist at the University of Arkansas. “Prices are going up through auction at wholesale, and they’re benefiting because supplies are tight.”
