Egg Prices Scrambled: Are Corporations Cashing In on Avian flu Fears?

American consumers are shelling out significantly more for eggs, with the cost of a dozen large eggs hitting almost $5 in January. This peak price represents a staggering 157% increase compared to the average price before the avian flu outbreak, which is more than two and a half times higher. While the avian flu has undoubtedly impacted poultry flocks, new research suggests that major egg corporations might potentially be exploiting the situation to inflate prices and generate record profits, even in regions relatively unaffected by the virus.

The dramatic rise in egg prices has triggered scrutiny of the egg market,raising concerns that corporate consolidation is exacerbating the problem. Food and Water Watch (FWW) released a new analysis suggesting that the avian flu outbreak alone cannot fully account for the steep price increases, hinting at potential price gouging.

Corporate Consolidation: The rotten Egg oligarchy

The FWW report, titled “The Economic Cost of Food Monopolies: the Rotten Egg Oligarchy,” emphasizes the role of corporate consolidation in driving up egg prices. Amanda starbuck, lead author of the report, argues that the issue goes beyond just the avian flu.

Bird flu does not fully explain the sticker shock consumers experience in the egg aisle … corporate consolidation is a key culprit behind egg price spikes.
Amanda Starbuck, Food and Water Watch

Starbuck contends that powerful corporations, controlling every aspect of the egg supply chain, are capitalizing on the crisis to generate excessive profits by raising prices beyond what is necessary to offset rising costs. this concentration of power allows them to manipulate the market to their advantage, leaving consumers to foot the bill.

Regional Price Discrepancies: A Telling Tale

The FWW analysis further reveals that egg prices increased in some regions even before the new strain of the H5N1 virus significantly impacted poultry flocks. As an example, the Southeast remained largely free of bird flu in it’s table egg flocks until January 2025. Despite egg production in the region rising in 2022 and 2023 compared to 2021 levels, retail egg prices in the Southeast mirrored the national spikes.

even as egg production recovered in 2023, prices remained elevated. Between april and December 2023, national retail inventories of eggs exceeded the five-year average by as much as almost 13%. Though, the average egg price for consumers remained higher than the five-year average each month, suggesting factors beyond supply and demand were at play.

Cal-Maine’s Profit Surge: A Bird’s-Eye View of Profits

Cal-Maine,the nation’s largest egg producer,has faced increased scrutiny due to its financial performance during this period of soaring prices. The company, responsible for producing one in every five eggs consumed in the U.S., reported a sevenfold increase in gross profits in fiscal year 2023 compared with 2021, after increasing prices above rising costs. Notably, Cal-Maine’s flocks were not affected by avian flu during that period, raising questions about the justification for such meaningful profit increases.

The Mississippi-based company distributed shareholder dividends totaling $250 million in fiscal year 2023, a staggering 40 times more than the previous fiscal year.Company filings indicate that Cal-Maine sold 7% more eggs in 2024 compared with 2021 and tripled its profits over the same period, further fueling concerns about potential price gouging.

The Unavoidable Impact of avian Flu

While corporate practices are under the microscope, the impact of avian flu on the egg market cannot be dismissed. Nationwide, 166 million poultry have been culled as the virus began spreading through commercial flocks in early 2022. According to U.S. Department of Agriculture (USDA) figures, there were 9% fewer egg-laying hens in January 2025 compared with three years earlier, contributing to supply chain disruptions and price increases.

The vast majority of avian flu outbreaks have occurred on factory farms, where hundreds of thousands or even millions of egg-laying hens are caged in close proximity. This creates ideal conditions for the rapid spread of infectious diseases.In February, an outbreak was detected in a flock of almost 3.1 million egg-laying hens in Darke County, Ohio. federal regulations mandate that if one hen is infected,the entire flock at the affected site must be killed to mitigate the risks posed by the virus,further impacting egg supply.

starbuck emphasized the role of factory farms in exacerbating the bird flu outbreak, highlighting the inherent risks of such concentrated animal agriculture.

These same companies exacerbate the bird flu outbreak by raising their birds on factory farms, crammed together in hundreds of thousands or millions, creating the perfect breeding ground for disease.
Amanda Starbuck, Food and Water Watch

Calls for Investigation and Reform

Amid growing concerns about potential price gouging and market manipulation, calls for investigation are intensifying. Last month, Farm Action, a farmer-led advocacy association, urged federal antitrust agencies to investigate the egg industry, demanding a thorough examination of pricing practices and market dynamics.

The soaring egg prices have exposed vulnerabilities in the egg market, raising questions about corporate duty, market consolidation, and the impact of factory farming practices. As consumers continue to grapple with inflated prices, the need for greater transparency, regulatory oversight, and a more resilient egg production system has never been more apparent.