If you’ve grabbed a carton recently, you’ve probably noticed that what used to be an affordable breakfast staple now feels like a luxury item. In some places, eggs are selling for almost $10 a dozen! That’s why the Department of Justice has stepped in to investigate why we’re all paying so much for eggs. They’re looking at major egg producers to find out if the sky-high prices are really just because of bird flu, or if something fishy is going on behind the scenes.
Why eggs cost so much more now
If you’re wondering why your morning scramble is taking a bigger bite out of your wallet, there’s a big reason: bird flu. This isn’t just any regular flu – it’s highly pathogenic avian influenza (HPAI), and it’s been hitting chicken flocks hard across the country. When farms detect bird flu, they have to kill all the chickens to stop it from spreading. Since 2022, farmers have had to kill nearly 158 million birds! With fewer chickens laying eggs, there are fewer eggs to go around, and prices go up.
But that’s not all that’s driving up prices. Egg farmers are also dealing with higher costs for chicken feed, fuel, and workers. They’re spending more money on keeping their chickens safe from disease, too. All these extra costs get passed on to you at the store. According to government data, egg prices jumped 53% in just one year. Some stores have even started limiting how many cartons you can buy to make sure they don’t run out.
What the Department of Justice is investigating
The Justice Department isn’t totally convinced that bird flu explains why eggs cost so much. That’s why they’ve launched an investigation into big egg companies like Cal-Maine Foods and Rose Acre Farms. They want to know if these companies might be working together to keep prices high. The investigation is looking at whether these egg producers are sharing information about pricing and supply that they shouldn’t be sharing. This kind of behavior could be illegal if it means they’re teaming up to make us pay more.
The DOJ’s antitrust division in Chicago is running this investigation, and they’re not messing around. They’ve sent demands for information to several big egg companies. These are basically like subpoenas that force the companies to hand over information about how they decide on prices and what they talk about with other egg producers. The government wants to see if there’s proof that these companies are working together to keep egg supplies tight and prices high.
What egg producers are saying in their defense
Of course, the egg industry has its own explanation for the high prices. They say they’re just as surprised by the price increases as we are. The CEO of the American Egg Board claims that egg farmers are “price takers, not price makers.” What does that mean? Basically, they’re saying that farmers don’t get to decide what price to sell eggs for – they have to accept whatever price the market sets. And right now, with fewer eggs available because of bird flu and lots of people still wanting to buy eggs, the market price is very high.
The industry says we’re seeing a “perfect storm” in egg markets. The bird flu has knocked out millions of laying hens, reducing the number of eggs available. At the same time, demand for eggs has stayed high or even increased. Economics 101 tells us that when supply goes down but demand stays the same, prices go up. Egg producers insist this is just simple economics at work, not any kind of conspiracy to gouge consumers.
The case against big egg companies
Some people aren’t buying the egg industry’s explanation. Advocacy groups like Farm Action and Food and Water Watch suspect that big egg companies are taking advantage of the bird flu situation to make extra money. They point to the fact that egg prices started climbing even before the recent wave of bird flu hit farms. Plus, they say the egg industry has become more concentrated, meaning fewer companies control more of the market. With less competition, these big companies might have more power to control prices.
Farm Action specifically accuses Cal-Maine Foods (the biggest egg producer in the US) and four other companies of holding back supply to drive up prices. They say these companies want prices to stay high so they can buy up smaller egg farms that can’t compete. Food and Water Watch has released a report showing that egg prices were going up even when production costs weren’t changing much. This suggests that something besides normal costs might be pushing prices higher.
How high have egg prices actually gotten
The numbers are pretty shocking when you look at them. The average price of a dozen large Grade A eggs hit $4.95 in January 2023. Just a year earlier, that same carton would have cost only $2.52! And that’s just the average – in some areas, especially big cities or places far from egg farms, prices have shot up even higher. Some shoppers report seeing eggs for $7 or $8 a dozen. For restaurants, the situation is even worse. The cost of a case containing 30 dozen eggs has gone from around $38-$60 a few years ago to over $230 recently.
If we look at the bigger picture, the increases are just as dramatic. The overall value of table eggs has risen by 192%, and the average price per dozen eggs exported has jumped by 223% from $2.53 to $5.63. In February 2023, egg prices were nearly 59% higher than they were a year before. That’s way more than the general inflation rate for other foods. No wonder the government is asking questions about these unprecedented price hikes!
How bird flu has affected egg production
To understand why bird flu is such a big deal for egg prices, we need to know how it affects chicken farms. When a farm detects even one case of bird flu, they typically have to kill all the chickens in that facility to prevent the disease from spreading further. Since this latest outbreak began in early 2022, farmers have had to destroy tens of millions of egg-laying hens. That’s a huge hit to the egg supply, and it takes time to recover from losses like that.
It’s important to know that there’s a difference between chickens raised for meat and those raised for eggs. Egg-laying hens are more vulnerable to bird flu, and it takes longer to replace them when they’re lost. A chicken raised for meat reaches market size in just 6-8 weeks, but an egg-laying hen needs about 5-6 months before she starts producing eggs. Plus, after a farm loses its hens, the buildings need to be thoroughly cleaned and disinfected before new birds can be brought in. This whole process can take months.
How restaurants and shoppers are coping
With egg prices so high, both restaurants and home cooks are having to adapt. Some restaurants have started adding surcharges to egg dishes on their menus. Others are changing their recipes to use fewer eggs, or they’re temporarily removing some egg-heavy items from their menus altogether. A restaurant that used to pay $60 for a case of eggs now faces a bill of over $200 for the same amount. Those costs have to be covered somehow, and usually that means higher prices for customers.
At home, many people are cutting back on eggs or finding substitutes. Some are turning to powdered eggs or egg alternatives made from plants. Others are just eating eggs less often, saving them for special weekend breakfasts instead of everyday meals. Some grocery stores have put limits on how many cartons each customer can buy, similar to what happened with toilet paper during the early days of the pandemic. These measures help ensure that stores don’t completely run out of eggs.
When will egg prices go back to normal
Everyone wants to know when we can expect relief from these crazy egg prices. Unfortunately, there’s no simple answer. The USDA has predicted that egg prices might start to drop in the second quarter of 2025, as farms replace the hens they’ve lost to bird flu. However, that depends on the outbreak slowing down. If new cases keep popping up, prices could stay high longer. The government is trying to help speed things up with a $1 billion plan to fight bird flu and support affected farmers.
This plan includes money for farmers who’ve lost their flocks, expanded programs to prevent the spread of bird flu, and research into potential vaccines. The government is even considering options for importing more eggs from other countries to help increase supply. But Senator Chuck Grassley, who supports the DOJ investigation, says he’s not sure when the market will stabilize. It all depends on how quickly farmers can repopulate their flocks and whether the bird flu outbreak continues to spread.
The investigation into egg prices shows how complex our food system really is. While bird flu has definitely impacted egg production, the massive price increases have raised questions about whether big companies are taking advantage of the situation. As the Department of Justice looks for answers, we’ll all be watching our grocery bills and hoping for some relief soon. In the meantime, maybe those backyard chicken coops some of your neighbors have don’t seem like such a crazy idea after all.
