A nationwide egg shortage due to avian flu has led to record-high prices and widespread outrage among consumers. However, experts say that the situation is more complex than initially meets the eye.
Angela Huffman, head of Farm Action, a nonprofit organization campaigning against food system corporatization, suspects that the true culprit behind rising egg prices may not be the avian flu outbreak alone. She argues that large egg producers are exploiting the shortage to rake in significant profits.
“We noticed that while egg prices skyrocketed, the largest producers saw their profits increase drastically,” Huffman said. “It’s odd because if they just needed to raise prices due to hen losses, why did their profits surge five times?” Huffman’s concerns were echoed by food economists Ortega and Wooten.
One of these economists, Justin Ortega, believes that Cal-Maine, the nation’s largest egg producer, is merely benefiting from a windfall. He points out that even when prices rise, people continue to buy eggs due to demand.
“The company’s facilities house a large number of birds, reducing their costs,” Ortega said. “Higher prices help allocate scarce resources and prevent overconsumption.”
Jadrian Wooten, another food economist, agrees that the key issue is the consolidation of the US food sector into a few hands. He argues that companies use supply chain disruptions to price-gouge consumers.
The root cause of the problem lies in the “consolidation of our food sector,” Huffman said. Unfortunately, this trend shows no signs of reversing. Eggs are considered an inelastic product, meaning rising prices don’t necessarily decrease consumption. With 97% of US households buying eggs despite high prices, companies have little incentive to adjust their pricing strategies.
The ongoing egg shortage and price hike raise concerns about the exploitation of consumers by large food corporations. As Huffman pointed out, there is a need for greater transparency and accountability in the food industry.
Source: https://slate.com/business/2025/04/egg-prices-justice-department-investigation.html