EGG PRICES STILL RISING RAPIDLY AMID AVIAN FLU OUTBREAKS; JUSTICE DEPT. LAUNCHES PRICE GOUGING INVESTIGATION
By G. A. McNeeley
Photo courtesy of Brian McNeeley
March 19, 2025 (Washington D.C.) — The Agriculture Department predicts egg prices could rise by more than 40%, on top of already steep price rises in 2024. While egg producers blame bird flu outbreaks, the Justice Department this month announced an investigation into whether egg producers might be sharing information and engaging in price gouging, ABC News reports.
President Donald Trump’s campaign platform including a pledge to bring down inflation including egg prices, but so far, prices continue to skyrocket. Now, the administration is offering its first details on its plan to fight avian flu and ease costs.
With an emphasis on farms tightening their measures to prevent avian flu’s spread, Agriculture Secretary Brooke Rollins says the US Department of Agriculture (USDA) will invest another $1 billion on top of the $2 billion it has already invested, since the outbreak first began in 2022, AP reports.
The main reason egg prices have climbed (hitting an all-time average high of $4.95 per dozen) is that more than 166 million birds have been slaughtered to limit the virus’ spread when cases are found. Most were egg-laying chickens. Just since the start of the year, more than 30 million egg layers have been killed.
However, new research by Food and Water Watch suggests that major egg corporations might also be using the avian flu as an excuse to raise the price of eggs, the Guardian reports.
The Price of Eggs Is Rising
The USDA is predicting that the cost of eggs will go up by 41.1% this year.
Prices have more than doubled since before the outbreak began, costing customers at least $1.4 billion last year, according to agricultural economists at the University of Arkansas. Some customers are even paying more than a dollar per egg (over $12 a dozen) in some places.
Rollins acknowledged that it will take some time before customers see an effect at the checkout counter. It takes infected farms months to dispose of deceased birds, sanitize their farms and raise new birds.
“It’s going to take a while to get through, I think in the next month or two, but hopefully by summer,” Rollins told AP News.
What Is The Administration’s Plan?
The plan calls for $500 million investment to help farmers bolster biosecurity measures, $400 million in additional aid for farmers whose flocks have been impacted by avian flu, and $100 million to research and potentially develop vaccines and therapeutics for U.S. chicken flocks, and explore rolling back what the administration sees as restrictive animal welfare rules in some states, such as California’s cage-free requirement, a humane animal treatment measure that was approved overwhelmingly by voters. However, increasing crowding by keeping poultry in cramped cages could actually increase spread of the disease.
The USDA has already paid farmers roughly $1.2 billion for the birds they had to slaughter, AP reports. The additional aid will continue going to those payments, and help farmers bring in new flocks more quickly.
The administration is in talks to import about 70-100 million eggs from abroad in the coming months, Rollins said. But there were 7.57 billion table eggs produced in the U.S. last month, so those imports don’t appear likely to make a significant difference in the market.
Trump administration officials have suggested that vaccines might help reduce the number of birds that have to be slaughtered when there is an outbreak. However, no vaccines have been fully approved for widespread use in poultry, and the industry has said the current prototypes aren’t practical because they require individual shots for each bird. Plus, vaccinated birds could jeopardize exports, since some countries have restrictions.
Fired Workers Are Being Rehired
Rollins said she believes the USDA has enough staff to respond to avian flu, even after all the cuts to the federal workforce at the direction of Elon Musk’s Department of Government Efficiency (DOGE).
“Will we have the resources needed to address the plan I just laid out? We are convinced that we will… as we realign and evaluate where USDA has been spending money, where our employees are spending their time,” Rollins told AP News.
Democratic U.S. Senator Amy Klobuchar said the new plan is an important step, but the USDA needs to confirm it rehired everyone involved in the avian flu response who was mistakenly fired.
“At a time when producers are already grappling with the bird flu, the public is facing high prices, and all Americans are on edge about what broader spread of this virus could mean, the last thing the administration should have done was to eliminate these positions,” Klobuchar told AP News. “USDA must rehire these crucial personnel immediately.”
The Agriculture Department is scrambling to rehire several workers who were involved in the government’s response to the ongoing avian flu outbreak that has devastated egg and poultry farms over the past three years.
A USDA spokesperson said the department “continues to prioritize the response to highly pathogenic avian influenza (HPAI)” and several key jobs like veterinarians, animal health technicians and other emergency response personnel involved in the effort were protected from the cuts. Some employees of the USDA’s Animal and Plant Health Inspection Service (APHIS) were also eliminated.
“Although several APHIS positions supporting HPAI were notified of their terminations over the weekend, we are working to swiftly rectify the situation and rescind those letters,” the department spokesperson told AP News.
Politico and NBC News reported that the jobs that were eliminated were part of an office that helps oversee the national network of labs the USDA relies on to confirm cases of avian flu and other animal diseases. It wasn’t immediately clear how many workers the department might be trying to rehire, or if any of them worked at the main USDA lab in Ames, Iowa.
Avian Flu Is Affecting Egg Production
Egg and poultry farmers have already been working to protect their birds by making workers change and shower before entering barns, using separate sets of tools, and sanitizing any vehicles that enter farms. The challenge is that wild birds easily spread the virus.
The department has already done biosecurity reviews on about 150 farms and only one had an outbreak afterward, the USDA said, so officials believe more can be done to protect birds and they are going to make those reviews available to more farms. Any farm that has an outbreak has to undergo a biosecurity audit, and the government will help pay up to 75% of the needed biosecurity improvements.
The vast majority of avian flu outbreaks have been on factory farms where hundreds of thousands (or sometimes millions) of egg-laying hens are caged in close proximity, creating ideal conditions for the rapid spread of infectious diseases.
If one hen is infected, federal regulations call for the entire flock at the affected site to be killed – due to the risks posed by the deadly and highly contagious virus to other poultry, animals and humans, further disrupting supply and increasing costs.
So far, 70 human cases have been confirmed in the US. One person has died and another three have required hospital treatment. Almost 1,000 cattle herds have been infected, and more than 54 million birds have been affected in the past three months. The virus has also been detected in almost every US territory.
Almost 631 million eggs were produced in January 2025 (nearly 10% fewer than January 2022, as flock sizes continue to drop). The USDA tracks pullets (the chicks hatched to replace egg-laying hens) which have been below the five-year average most months since the outbreak began in February 2022.
Corporations Are Also To Blame
While avian flu has been a principal driver of rising egg prices, the highly concentrated egg market may also be contributing, according to an analysis by Food and Water Watch (FWW).
“Bird flu does not fully explain the sticker shock consumers experience in the egg aisle… corporate consolidation is a key culprit behind egg price spikes,” Amanda Starbuck told The Guardian.
“Powerful corporations that control every step of the supply chain (from breeding hens to hatching eggs to processing and distributing eggs) are making windfall profits off this crisis, raising their prices above and beyond what is necessary to cover any rising costs,” Starbuck added.
The analysis found that in some regions, prices were going up even before the new strain of the deadly H5N1 virus had affected poultry flocks and reduced egg production. Even as egg production recovered in 2023, prices did not come down.
The country’s largest egg producer, Cal-Maine, boasted a sevenfold increase in gross profits in 2023, after increasing prices above rising costs despite its flocks not being affected by avian flu during that period.
Cal-Maine, which produces one in every five eggs eaten in the US, issued shareholder dividends totaling $250 million in 2023 – 40 times more than the previous year. The company sold 7% more eggs in 2024 (compared with 2021) and tripled its profits over the same period, according to company filings.
“The working class is struggling to afford groceries while companies like Cal-Maine are raking in huge profits and rewarding their shareholders,” Democratic congressman Ro Khanna told The Guardian. “The Trump administration has the power to lower grocery bills, but instead they are imposing blanket tariffs on allies, firing federal workers who are trying to prevent the bird flu, and putting billionaires over ordinary Americans.”
The top five egg companies own almost half (46%) of all egg-laying commercial hens. Headquartered in Mississippi, Cal-Maine is the only publicly traded US egg producer, and has 75% more hens than the next largest company.
In its financial documents, Cal-Maine suggests egg prices are outside the company’s control: “We do not sell eggs directly to consumers or set the prices at which eggs are sold to consumers.” But many of its customers rely on Cal-Maine for the majority of their egg needs, according to company filings, so the price it sells its eggs factors into grocery store prices.
Lakeside egg rancher speaks with ECM
East County Magazine spoke with Frank Hilliker, co-owner of Hilliker’s Ranch Fresh Eggs in Lakeside.
Hilliker said that while his business doesn’t have the avian flu, “it’s driven prices of eggs so high that a bunch of people don’t want to buy.”
Regarding the many chickens killed nationwide due to exposure to avian flu, Hilliker said, “When you take that kind of supply off the market,” it will heavily affect the production of eggs, as well as their prices.
Hilliker said bird flu has actually increased demand, forcing rationing of sales per customer. “We’ve always sold eggs at the farm, and we’re not selling any more eggs out of the farm now than before, but we have more customers.” He added that they also “put limits on what people can buy,” which make it so they’re, “able to spread it out a little bit more that way.”
The farm has capacity for 30,000 chickens, according to Hiilliker. As for steps being taken to prevent bird flu from infecting his flocks, Hillkier explained the farms’ health and safety protocols. “We’re locked down in our chicken areas. Everything that goes through the gates where the chickens are, is disinfected,” which includes people and equipment, he said.
Sources:
https://apnews.com/article/record-egg-prices-usda-bird-flu-virus-92e9f5fbc4e0a792be484a4aee5b9c16
https://apnews.com/article/usda-firings-doge-bird-flu-trump-fdd6495cbe44c96d471ae8c6cf4dd0a8
