Claire Rowe
Associate Editor
Loyola University Chicago School of Law, JD 2026
Egg prices are soaring, but is it just supply issues—or something more? While avian flu and regulations have strained production, major suppliers are raking in record profits, raising suspicions of price manipulation. A federal jury recently found top producers guilty of price-fixing, fueling concerns that consumers are being taken advantage of. As grocery bills climb, the question remains: who’s really cracking under pressure?
Breaking the bank: the true cost of eggs
Eggs are a fundamental staple in the American household and the second most commonly purchased grocery item in the U.S. However, eggs have become increasingly less affordable for the average American household. While inflation affects overall food costs, egg prices have seen a disproportionately higher increase compared to a 2.5% rise in prices across other food groups. Today, egg prices are at a near-all time high being sold at $4.15/dozen, and the U.S. The Bureau of Labor Statistics predicts more record-breaking prices, with an expected 20% rise in cost.
The primary reason behind the recent egg price surge is supply and demand, largely driven by avian flu outbreaks. Nationwide, egg farmers lost over 38 million birds to bird flu last year, including 14 million in December alone. The spread of the virus has been difficult to control because it spreads rapidly among animals, mutates easily, and can be transmitted through inanimate objects. Unlike previous strains, this virus is also resistant to high temperatures, making it even harder to manage. When a large number of birds are lost, recovery is slow, taking six months to a year to replenish flocks.
To cope with these losses, businesses have shifted the burden onto consumers. For example, Waffle House recently added a 50-cent surcharge per egg. Meanwhile, grocery stores continue to charge premium prices even as supply levels begin to stabilize. However, this isn’t the first time egg prices have been manipulated to benefit suppliers and grocery stores at the expense of consumers.
A recent history of price manipulation
After the COVID-19 pandemic, egg prices rose gradually before surging in recent years. In 2022, the price of a dozen eggs rose by 138% from the prior year. At the beginning of 2023, a dozen eggs cost an average of $4.82—a record high. As of late 2024, reports indicate that the average price of eggs rose nearly 37% in just one year. These extreme price hikes raise concerns about whether suppliers and grocery stores are taking advantage of market conditions.
Cal-Maine Foods, the largest U.S. egg producer, controls 20% of the retail egg market. In early 2023, the company reported a record $323 million in profit in the last quarter alone, a sharp turnaround from a nearly $17 million loss in 2022. Its profit margin jumped from -2.5% to 22.3%. During this same period, the U.S. Department of Agriculture’s (USDA) Economic Research Service found that while egg prices increased by 138%, egg production declined by only 6%. This suggests that the price surge was disproportionately high compared to supply changes, leading lawmakers and interest groups to suspect price-gouging and deceptive business practices.
Legal challenges: antitrust violations and state laws
The Federal Trade Commission (FTC) did not take immediate action, but in late 2023, a federal jury found Cal-Maine Foods and other egg producers guilty of violating antitrust laws. The companies were ordered to pay $17.7 million in damages in a lawsuit brought by major food manufacturers, including Kraft Heinz Co., Kellogg, and Nestlé. The plaintiffs accused the egg suppliers of price-fixing—an illegal practice where competitors conspire to keep prices artificially high, limiting competition and driving up costs for consumers. The lawsuit claimed that egg suppliers deliberately reduced the domestic egg supply by exporting eggs abroad and limiting chicken populations through cage space restrictions, early slaughter, and flock reductions.
Certain state laws have also contributed to supply issues. Ten states—including California, Massachusetts, Nevada, Washington, Oregon, Colorado, and Michigan—have enacted laws requiring minimum space for chickens or cage-free conditions for egg-laying hens. While these regulations may initially constrain supply, some argue that they are more effective in the long run because they reduce the spread of disease, leading to fewer flock losses and more stable egg production. For now, economists recommend sourcing eggs locally from farmers markets. However, this may be less practical in urban areas. Others argue that the responsibility should fall on retailers, citing issues such as driver shortages and limited refrigerated truck availability.
In 2023, when egg prices reached an all-time high, egg producers urged the FDA to ease certain regulations, similar to the restrictions implemented by some states, for eggs intended for human consumption. However, their efforts did not lead to any policy changes.
The bottom line
While environmental and regulatory factors, such as avian flu and state laws, have played a role in rising egg prices, there is growing evidence that suppliers and grocery stores may be using these challenges as an opportunity to inflate prices beyond what supply disruptions justify. The record-breaking profits of major egg producers, even as consumers struggle with soaring grocery bills, raise serious concerns about market manipulation. The burden of addressing these rising costs should not fall on consumers alone. Policymakers and regulators must remain vigilant, ensuring that businesses do not exploit economic hardships for financial gain at the expense of everyday shoppers.