Egg Industry Sees Rising Profits Amid Avian Flu and Government Relief

The US egg industry has faced significant challenges in recent years, with the ongoing avian influenza outbreak leading to the mass culling of millions of hens.

The result has been soaring egg prices, increased consumer costs, and record-breaking profits for some of the nation’s largest egg producers.

Since 2022, the highly contagious avian flu has forced the slaughter of over 120 million hens, reducing egg supplies and contributing to price spikes. At its peak, the average price of a dozen eggs more than doubled, reaching as high as $5.90 in some markets. President Donald Trump addressed the situation in Congress, calling it “out of control.”

While many egg farms struggled with lost production, some large-scale producers have seen financial gains. Cal-Maine Foods, the nation’s largest egg producer, reported extraordinary profits as prices climbed. The Mississippi-based company, which supplies about 20% of the country’s eggs, saw quarterly profits surge from an average of $5 million before the outbreak to $138 million in recent quarters.

The US Department of Agriculture (USDA) has provided significant financial assistance to egg producers affected by the flu outbreak. These relief payments help companies repopulate their flocks but have also contributed to concerns about market fairness.

Cal-Maine received over $43 million in USDA aid after losing more than 3 million hens to the virus. Other major egg producers, such as Hillandale Farms and Versova, received even larger payouts—$53 million and $107 million, respectively. Critics argue that these payments, combined with high egg prices, have led to excessive profits for major corporations while smaller farms struggle to recover.

Consumer advocacy groups have raised concerns over the fairness of these relief programs.

“For those companies to be bailed out and then turn around and set exploitative prices, it just adds insult to injury for consumers,” said Thomas Gremillion of the Consumer Federation of America.

The Justice Department has launched an antitrust investigation into whether egg producers engaged in price-fixing. Cal-Maine has confirmed its cooperation with the probe but has not commented on potential legal outcomes.

While egg prices have declined since their peak, they remain higher than pre-pandemic levels. The USDA recently increased compensation for affected farms, raising payments per lost chicken from $7 to nearly $17. This move has prompted further debate about government intervention in the industry.

With input from the Washington Post, the Financial Times, and Forbes.