WASHINGTON, D.C. / Content Syndication Services / — U.S. egg prices are falling sharply as supply expands and demand remains light, leaving producers with weaker returns while operating costs remain elevated. The U.S. Department of Agriculture’s latest market data showed national wholesale trading for loose white large shell eggs at 35 cents a dozen on May 22, with supplies described as moderate to heavy, offerings available and trading mostly slow across a market adjusting to a broader production rebound.
Federal production figures show the supply increase has been substantial. U.S. egg output totaled 8.92 billion in April, up 5 percent from a year earlier, including 7.65 billion table eggs. The average number of layers rose 4 percent to 373 million, while the number of layers on hand at the start of May was also higher than a year earlier. The figures point to a larger laying flock producing into a market where spot prices have weakened.
Consumers have seen prices retreat from last year’s highs, though retail prices remain above pre-pandemic norms in many stores. The average U.S. retail price for a dozen eggs fell to $2.35 in March from $6.23 a year earlier, then declined again to $2.25 in April. Wholesale prices have fallen more steeply than shelf prices, widening the pressure on producers who sell into spot and regional markets.
Producer margins under pressure
The American Farm Bureau Federation said Midwestern producer prices for large white shell eggs fell to 25 cents a dozen in the week of May 8, down 93 percent from a year earlier. It said breaker egg prices, which apply to eggs used in liquid and processed products, also dropped sharply. Cost estimates from the Egg Industry Center showed conventional egg production expenses remained well above those producer prices, creating a gap between revenue and production costs.
Cal-Maine Foods, the largest U.S. egg producer, reported that fiscal third quarter net sales fell 53 percent from a year earlier, while gross profit dropped 83.3 percent and net income fell 90.1 percent. The company said conventional egg sales declined 72.1 percent, driven by a 70.1 percent decrease in average selling prices. Its results reflected the rapid change from last year’s tight supply conditions to a weaker pricing environment.
Supply recovery resets market
The current decline follows a period when highly pathogenic avian influenza disrupted laying flocks and contributed to record egg prices. As flock numbers recovered and output increased, market conditions shifted. Wholesale reports now describe light loose egg interest, moderate to heavy supplies and slow trading. Foodservice, retail and breaking stock channels have also been absorbing available supplies at lower prices, reinforcing the broader reset across the egg market.
The result is a sharply different market for U.S. egg producers and consumers. Retail shoppers are paying less than they did during last year’s price spike, while farmgate and wholesale prices have fallen to levels that producers say are below production costs. The confirmed data show a market shaped by oversupply, lower wholesale egg prices, improved production and margin pressure across parts of the egg industry.