Egg prices began to fall during March
of ConsumerAffairsKey points
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DOJ Investigation into Egg Pricing: Cal-Maine Foods, the largest U.S. egg producer, is under investigation by the U.S. Department of Justice over egg prices, which spiked amid shortages linked to the bird flu outbreak. The company is cooperating with the probe.
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Record Sales and Consumer Response: Cal-Maine reported $1.42 billion in quarterly salesalmost double from the previous yearlargely driven by high egg prices. However, consumer pushback appears to be influencing the market, as nearly one-third of buyers reduced or stopped egg purchases due to high costs.
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Price Fluctuations and Market Dynamics: Egg prices surged to record levels in March before dropping due to reduced demand and stabilizing bird flu cases. Efforts to increase domestic supply and rising imports are helping, but new tariffs on imported eggs may hinder price relief.
Cal-Maine Foods, the nations largest egg producer, has disclosed that it is the subject of a U.S. Department of Justice investigation into egg prices, which have surged during shortages caused by the latest bird flu outbreak. The company said it is cooperating with the probe.
The company attracted the attention of the U.S. government as its sales rose while the effects of bird flu dramatically reduced the number of eggs on store shelves. Data collected by IndexBox show the average cost of a dozen eggs at the retail level hit $5.90 in February, a 10% year-over-year increase.
Other industry sources show the average wholesale price for a dozen eggs reached a record high of $8.17 in early March, with prices plunging to just under $5 by the end of the month. This decline is largely attributed to reduced demand and fewer new cases of bird flu.
Cal-Maine recently reported quarterly sales of $1.42 billion, nearly double the sales from a year ago.
Steps to increase supply
The company said it has taken several steps to increase the number of available eggs, including increasing the number of hens in its facilities and reopening operations that had been closed during the worst of the outbreak. Those steps, the company said, resulted in sales of a record number of eggs in the latest quarter.
There is some evidence that consumers have played a role in bringing down prices. A study by Clarify Capital found that nearly a third of consumers stopped buying eggs, or reduced their purchases because of higher prices.
The U.S. has increased imports of eggs in recent months to alleviate the shortage. However, the new tariffs placed on imports could keep retail prices elevated, or even push them higher again.
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Posted: 2025-04-09 11:41:51
