Following Farm Action’s February 2025 letter to the Department of Justice (DOJ) and Federal Trade Commission (FTC) exposing excessive corporate profits, industry consolidation, and likely egg supply restrictions, the DOJ has opened an antitrust investigation into the industry. Farm Action initially brought these issues to the attention of the enforcement agencies and the public in a January 2023 letter.
In response to the news of the investigation, Farm Action issued the following statement:
“We applaud the Department of Justice’s action to address the skyrocketing price of eggs. Every American has felt the financial pain caused by the power of the monopolistic egg industry. While avian flu is real, it is no excuse for the price being charged at the grocery store for one of the country’s staples. While Farm Action’s analysis demonstrates likely antitrust abuses by the dominant egg-producing corporations, the DOJ has the legal authority to take the deep dive into the industry that is required to get to the bottom of this abuse, and they have the power to bring justice on behalf of the American people.”
While avian flu has been cited as the primary driver of skyrocketing egg prices, its actual impact on production has been minimal. Instead, dominant egg producers—particularly Cal-Maine Foods—have leveraged the crisis to raise prices, amass record profits, and consolidate market power. The slow recovery in flock size, despite historically high prices, further suggests coordinated efforts to restrict supply and sustain inflated prices.
Key Pricing Facts:
- The wholesale price of Grade-A, Large, White, Shell Eggs surged from around $0.50–$1.30 per dozen in 2021 to $6.00–$8.00 per dozen today.
- Cal-Maine Foods, which controls 20% of the egg market, increased its gross profits by 237% between FY21 and FY24. Between FY21 and FY23, their gross profits shot up by 646%.
- Cal-Maine has made more in a single quarter than they made in an entire year prior to the 2022 avian flu outbreak.
Evidence indicates that by not increasing their supply, the five dominant egg firms are forcing prices to stay high while reporting dramatic profit increases and level sales. These same firms are then using their increased profits to acquire their competition, further driving market consolidation instead of investing in replenishing or expanding their flocks. During the 2015 avian flu outbreak, the national flock numbers were recovered within eight months, yet this time around, a recovery has still not been achieved even though it could have been.
Key Production Facts:
- In a month-to-month comparison to 2021, the egg-laying flock was, on average, only 3.82% smaller in each month of 2022, 3.16% smaller in each month of 2023, and 5.18% smaller in each month of 2024.
- Cal-Maine egg production has remained stable at approximately 1.1 billion dozen eggs sold annually from 2021 to 2024.
- Production of eggs in the U.S. has not dipped below per capita consumption of eggs in any year between 2021 and the present.
In addition, another change from the 2015 epidemic is that entry into the market has become significantly harder due to the highly concentrated nature of the breeder supply chain. Today there are just two private European corporations controlling the breeding of an estimated 90% of the world’s egg-layer hens, and Cal-Maine, one of the largest egg producers, controls its own breeder flock. This impedes the ability of new competitors to enter the market and increase supply to help stabilize prices.
Media Contact: Emma Nicolas, enicolas@farmaction.us, 202-450-0094
