Full Breakdown
Egg Prices Plunge as Oversupply Meets Rising Production Costs
5/22/2026, 10:26:23 PM
Avian Flu Aftermath Sets Stage for Oversupply
The 2024–2025 avian-flu outbreak decimated U.S. laying-hen populations, prompting producers to accelerate breeding in 2025–2026. The rapid flock expansion now exceeds demand, creating the surplus that underlies the market shift.
Oversupply Triggers Sharp Price Decline
The Bureau of Labor Statistics recorded a 44.7 % year-over-year drop in the price of a dozen eggs in March 2026, the steepest decline since the avian-flu crisis. After producers rebuilt flocks to replace lost birds, supply surged beyond current consumer demand, pushing retail prices below a dollar in many markets.
Recent Data on Prices and Input Costs
Feed expenses, which spiked in 2022 and 2023, now represent roughly half of the cost of a premium dozen egg. Diesel prices have risen sharply amid the war in Iran, adding a direct transportation cost to egg distribution. Together, these input pressures erode producer margins even as consumer prices fall.
Industry Leaders Speak Out
Pete & Gerry’s CEO Thomas Flocco said the market’s “oversupply situation” is the primary driver of sub-dollar dozen prices, while noting that “all of those cost pressures are finding their way into our cost structure.” American Egg Board President Emily Metz added that feed, fuel and labor costs “did not disappear” and continue to weigh on producers despite recovering demand.
Producer Response to Oversupply and Cost Pressures
Producers report that the sudden drop in retail prices is masking the underlying squeeze from rising feed, fuel, and labor costs. They face the challenge of managing the surplus while controlling expenses.
Cost-Inflation Concerns
Producers say the pressure on margins, combined with rising feed and fuel costs, makes it harder to sustain operations, especially for smaller producers. They warn that continued cost inflation could further strain profitability.
Implications for Market Stability
Lower retail prices provide immediate relief to shoppers, while the simultaneous drop in wholesale prices and rising input costs create pressure on producers’ margins. The combination of lower revenues per egg and higher feed, fuel, and labor expenses challenges profitability across the industry.
Verbatim Quotes
- “A year ago, all anybody could talk about was how expensive eggs were because a lot of birds were unfortunately lost,” — Thomas Flocco, CEO, Pete & Gerry’s
- “We now have an oversupply situation, which is why you're seeing in some cases a dozen eggs below a dollar,” — Thomas Flocco, CEO, Pete & Gerry’s
- “All of those cost pressures are finding their way into our cost structure,” — Thomas Flocco, CEO, Pete & Gerry’s
- “ American Egg Board President and CEO Emily Metz echoed those concerns, nothing that feed, fuel and labor costs "did not disappear" and continue to weigh on producers even as consumer demand returns and wholesale prices weaken.” — Emily Metz, President & CEO, American Egg Board
