The bird flu outbreak has led to the culling of over 166 million birds, significantly impacting egg supplies and causing egg prices to soar to unprecedented levels. The number of egg layers in the United States has decreased by approximately 12% from pre-outbreak figures, now standing at about 292 million birds. This reduction has been exacerbated by the recent culling of an additional 11 million egg layers, bringing the total to 30 million lost since January. As a result, retail egg prices have rocketed to a record average of $4.95 per dozen this month, a stark contrast to the typical pre-outbreak price of under $2 per dozen.
The spike in egg prices has stirred debate over the motives behind these increases. Cal-Maine Foods, the largest egg producer in the country, has reported a substantial profit increase. In the most recent quarter, the company recorded a $219 million profit, selling eggs at an average price of $2.74 per dozen. Notably, Cal-Maine sold 330 million dozens of eggs, up from 288 million the previous year, thanks largely to strong demand and strategic acquisitions.
The U.S. Department of Agriculture (USDA) maintains a longstanding policy of slaughtering entire flocks when the virus is detected on a farm. Despite this measure, the Trump administration unveiled a new plan this week to combat bird flu, though its impact on prices remains uncertain. Notably, a jury ruling in 2023 found that major egg producers previously used tactics to limit egg supply and inflate prices in the 2000s, prompting skepticism about current practices.
Calls for a government investigation into the egg industry's pricing strategies are growing louder. Advocacy groups, Democratic lawmakers, and a Federal Trade Commission member are urging an inquiry into whether companies are exploiting the situation.
“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 Angela Huffman.
The USDA compensates farmers for each bird culled due to bird flu, but these payments do not cover all costs incurred by farmers who face prolonged periods without income. Recovering from such losses can take up to a year as farms undergo cleaning and new birds are raised to egg-laying age.
Amidst growing tension between consumers and producers, some experts argue that the price increase is a natural consequence of supply constraints rather than deliberate market manipulation.
“This isn’t a case where they’re taking the price up to gouge the market. It is the price is going up through auction at wholesale. And they’re benefiting from higher prices because supplies are tight,” explained Jada Thompson.
Emily Metz from the industry also emphasized that the current situation is solely related to bird flu.
“This has nothing to do with anything other than bird flu. And I think to suggest anything else is a misreading of the facts and the reality,” she stated.
However, as criticism mounts, political figures are weighing in on the issue. Senator Elizabeth Warren criticized the current administration's handling of food prices amidst this crisis.
“Donald Trump promised to lower food prices on ‘Day One’, but with egg prices skyrocketing out of control, he fired the workers charged with containing bird flu. Working families need relief now,” said Sen. Elizabeth Warren.
Addressing concerns that consumers are bearing the brunt of these price hikes, agricultural economist Brian Earnest noted:
“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.”
