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Egg Prices Plummet, Raising Questions for U.S. Producers

Egg prices in the United States are dropping rapidly after reaching record highs due to the avian flu outbreak. This sudden decline has led to questions about whether producers intentionally kept prices high.

Wholesale Prices Drop Amid Industry Scrutiny

According to commodity pricing service Expana, wholesale egg prices have fallen 54% over the past four weeks, reaching $3.91 per dozen as of Friday. The American Egg Board attributes this decline to the absence of major avian flu outbreaks in the past month and farmers’ efforts to replenish poultry stocks.

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Consumer Groups and Economists Suspect Price Gouging

Consumer advocacy groups and economists suggest the price drop accelerated after reports that the U.S. Department of Justice launched an investigation into potential price gouging by egg producers. High egg prices have been a symbol of the ongoing financial strain caused by persistent inflation.

Allegations Against Major Egg Producers

Small farmer and consumer advocacy groups have long accused top egg producers—Cal-Maine Foods and Rose Acre Farms—of keeping prices artificially high for increased profits. David Anderson, an economics professor at Centre College in Kentucky, stated, “This suggests to me that prices didn’t need to be that high if they can fall this quickly and easily.”

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Industry Denial and Defending Market Trends

Emily Metz, CEO of the American Egg Board, dismissed the allegations as a “conspiracy theory.” Cal-Maine Foods did not respond to requests for comment, while Rose Acre Farms declined to comment. Metz argued that the egg industry is in a “fight for survival.”

Impact of Avian Flu and Supply Constraints

The avian flu, which began in 2022, has intensified in recent months, leading farmers to cull approximately 30 million birds so far this year. Metz predicts ongoing egg shortages through at least the end of the year, exacerbated by industry consolidation among a few major companies.

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Slower Poultry Restocking Raises Concerns

Joe Maxwell, co-founder of advocacy group Farm Action, accused major egg producers of deliberately slowing poultry restocking efforts compared to the 2015 avian flu outbreak. He argued that restricting egg supply was a tactic to keep prices high. Last month, Cal-Maine Foods reported a quarterly gross profit of $356 million—four times higher than the previous year.

Skepticism Over Price Coordination

Jeremy Horpedahl, an economics professor at the University of Central Arkansas, expressed skepticism that farmers could successfully fix prices without illegal coordination, for which no evidence has surfaced.

Government Intervention and Market Reactions

Agriculture Secretary Brooke Rollins highlighted a $1 billion initiative by the Trump administration aimed at reducing prices through increased egg imports and farmer assistance. However, Amy Smith, vice president of food and agriculture consultancy Advanced Economic Solutions, stated it is “too early” to see tangible effects, adding that current imports are only “enough for a single day’s brunch in this country.”

Retail and Consumer Impact

Retailers and restaurant owners welcome the price decline after months of selling eggs at a loss. However, consumers still face near-record prices at grocery stores. A dozen large Grade A eggs averaged $5.90 last month in U.S. cities—up 97% from a year ago and the highest price in over a decade, according to the Bureau of Labor Statistics.

Horpedahl noted that while grocery store prices have dropped by up to a dollar per dozen in some areas—such as Texas, where eggs now cost around $4 per dozen—most U.S. shoppers may not see relief for several weeks. Current inventory was likely purchased at higher wholesale prices, and retailers will seek to recover their costs.

Uncertainty Over Future Prices

Anderson of Centre College remarked, “Everyone is wondering if this price drop is real and if it will last. No one is sure what happens next.”

Conclusion

As egg prices fluctuate, scrutiny on the industry remains high. Whether the decline is market-driven or the result of regulatory pressure, consumers and policymakers will be watching closely in the coming weeks.

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