- U.S. egg supplies drop 12% as 177 million hens removed from production
- Cal-Maine Foods reports 18,000% profit increase amid record prices
- Federal agencies face mounting pressure to investigate potential market manipulation
The ongoing avian influenza crisis represents the worst poultry health disaster in U.S. history, with commercial flocks losing 177 million birds since 2022. While producers cite biosecurity challenges and supply chain disruptions, consumer advocates point to suspicious profit patterns. Major supplier Cal-Maine Foods saw quarterly earnings jump from $1.2 million to $219 million despite minimal HPAI impacts on their operations.
Industry analysts reveal three critical factors driving volatility: 48% increase in poultry feed costs since 2021, 22% rise in farm labor expenses, and $120 million in biosecurity upgrades across major producers. Midwestern grocery chains report 72-hour shelf shortages, particularly in Kansas and Texas where Cal-Maine facilities experienced limited outbreaks. The USDA’s compensation program covers only 68% of farmers’ losses during repopulation periods.
Historical context fuels skepticism – a 2023 antitrust ruling found egg producers guilty of artificially limiting supplies during the 2008 financial crisis. Farm Action’s analysis shows current production levels only 4% below 2022 averages, yet consumer prices remain 139% higher. University of Arkansas economists note wholesale auction mechanisms naturally inflate prices during shortages, but question why retail costs outpace production declines.
Regional impacts vary dramatically – Nebraska supermarkets report $3.99/dozen prices while California markets exceed $7.50. This 88% disparity contradicts transportation cost models, suggesting localized market manipulation. The FTC faces renewed calls to investigate contract poultry agreements that allegedly prevent smaller farms from increasing production during crises.
While producers invest $28 million in air filtration systems and AI-powered flock monitoring technology, consumer advocates demand pricing transparency. The USDA’s new HPAI task force promises real-time outbreak mapping, but critics argue mandatory profit margin reporting would better protect households. With 93% of commercial egg production controlled by 12 companies, market reform debates intensify as families ration staple protein sources.
