Egg Prices Rose 59% In 2022—And One Group Accuses Egg Suppliers Of ‘Foul Play’


As egg prices have soared 59%—at a median cost of $4.25—one advocacy group claims egg suppliers are in a “collusive scheme” to keep prices high to maximize profits.

Key Facts

Farm Action, an advocacy group critical of large agribusiness, claims in a letter to the Federal Trade Commission (FTC) that it should investigate egg suppliers for “price gouging” and “price coordination” by dominant egg producers including Cal-Maine foods and Rose Acre Farms.

High prices in 2022 have largely been attributed to an avian flu outbreak, which has so far affected 58 million chickens as of January, according to data from the U.S. Department of Agriculture.

According to Farm Action, egg producers saw a 40% increase in profits last year, and are accusing them of turning the avian flu and inflation into an “opportunity to extract egregious profits,” says the group.

Cal-Maine Foods, one of the largest egg producers in the country, denied the allegations, as Max Bowman, the chief financial officer and vice-president, told CNBC that apart from the avian flu, increasing costs of labor, hen feed and fuel contributed to higher egg production costs.

Key Background

Egg prices across the country hit record level prices in 2022 as they are selling for more than twice the median price from 2021 ($1.78). The avian flu started back in February 2022 with Iowa, the largest egg producer in the U.S., hit the hardest and before it spread to 47 other states. In 2015, the previous avian flu outbreak affected 21 states and 50 million birds were culled as a result of containing the spread of the flu and was, at the time, the most serious animal health event according to a USDA report.

Chied Critics

While Farm Action is pushing the FTC to investigate egg producers for the sudden jump in egg prices, economists believe it is simply current events that affected the price at the supermarket. “I don’t think we’ve seen anything that makes us think that there’s something there other than normal economics happening right now,” Amy Smith, vice president at Advanced Economic Solutions told CNBC. “I think it was just kind of a perfect storm of stuff that came together.”

Further Readings

Why Are Egg Prices Still So High? It’s Not The Reason You Think (Forbes)

Flu, Feed and Fuel Have Made Eggs Really Expensive (Forbes)

You May Also Like

Are You a Winner? How to Truly Define Winning in Your Business

Opinions expressed by Entrepreneur contributors are their own. Businesses gauge their performance…

Fair Tax Act Of 2023 Has Rate That Varies

UNITED STATES – MAY 16: Rep. Buddy Carter, R-Ga., leaves the House…

3 Student Loan Forgiveness Updates For 3 Critical Initiatives

US President Joe Biden in the Oval Office of the White House…

San Diego Padres Hope Fernando Tatis Jr. Has Grown With Them Owing Him Another $324 Million

San Diego Padres shortstop Fernando Tatis Jr. is hoping to regain his…

‘Dangerously’ Cold Weather Breaks Records In Northeast

Topline A “dangerously cold wind chill” broke temperature records across New England…

What Is An Earnings Recession, And How Does It Affect Stock Prices?

getty Key takeaways An earnings recession may be imminent as consumer spending…

Energy CEO Is Fighting Climate Science

Liberty Energy CEO rails against what he says is an alarmist call…

Why Economists' Jobs Forecasts Often Miss the Mark

The U.S. added more than a half million jobs last month. Forecasters…

Bruce Springsteen’s Ticket Prices For His February 14th Show Are Crashing

NEW YORK, NE(W YORK – NOVEMBER 08, 2021 (Photo by Jamie McCarthy/Getty…

After Restricting Balloon Overflights For 25 Years, China’s Protests Wear Thin

In the late 1990’s China repeatedly refused to permit balloon overflights. Gamma-Rapho…

Emerging Market Risk Analysis Must Focus On Resilience (Not Just Disruption)

SHANGHAI, CHINA – MAY 30: (CHINA OUT) Investors view the stock index…

Disney, Pepsi, Uber Set to Report During Lackluster Earnings Season

Business Earnings Fewer companies than usual are beating Wall Street’s estimates