Egg prices are experiencing a significant decline, a welcome development for consumers, as the market transitions from shortages caused by avian flu to a state of oversupply. However, this shift presents a new challenge for egg producers, who are grappling with increased input costs while facing lower wholesale prices.
Producers report that despite the falling prices at the grocery store, the overall squeeze from cost inflation is impacting their profit margins. Thomas Flocco, CEO of egg producer Pete & Gerry's, noted the stark contrast from the previous year when avian flu led to significant bird losses and soaring egg prices. "We now have an oversupply situation, which is why you're seeing in some cases a dozen eggs below a dollar," Flocco stated.
Data from the Bureau of Labor Statistics indicates that egg prices fell by 44.7% year-over-year in March 2026. This sharp decrease marks a reversal from the spike observed during the bird flu outbreak last year. Industry officials attribute this downturn to a period of flock rebuilding, which left producers cautious about potential future shortages.
Margin Pressure Mounts
The current price collapse is intensifying pressure on producer margins at a time when they can least afford it. The costs for essential inputs such as feed, which saw significant spikes in 2022 and 2023, have remained elevated for years. Additionally, fuel prices have surged, partly due to geopolitical events like the war in Iran. "All of those cost pressures are finding their way into our cost structure," Flocco explained, emphasizing that feed constitutes about half the cost of a dozen premium eggs and that diesel costs directly impact transportation expenses.
Emily Metz, President and CEO of the American Egg Board, corroborated these concerns. She highlighted that the costs of feed, fuel, and labor have not diminished and continue to burden producers, even as consumer demand recovers and wholesale prices weaken. "What we're seeing in the market today is much more about supply recovery and timing shifts than any fundamental change in consumption," said Sherman Miller, CEO of Cal-Maine Foods, the largest egg distributor in the U.S., in April.
Metz further clarified that the current weakness in egg prices is not demand-driven. Instead, she stated, "[Prices] reflect supply growing faster than demand can absorb, driven by flock recovery following [avian influenza], small farm growth and improved productivity."
Consumer Demand Remains Strong
Despite the oversupply, the demand for eggs remains robust, according to producers. Flocco pointed out that shoppers are increasingly prioritizing protein in their diets. A new survey commissioned by Pete & Gerry's revealed that over 40% of Americans are more focused on protein intake than they were five years ago. The survey also found that two-thirds of Americans consume eggs weekly specifically for their protein content, viewing whole foods like eggs as more nutritious than processed alternatives.
President Donald Trump has also commented on the falling egg prices, taking credit for the affordability ahead of the midterm elections. "We got the prices down, way down," Trump said recently, adding that prices are lower than they were four years prior.
