The bird flu helped this egg company's profits soar, and now its pricing practices are under investigation

Egg prices remain high as one producer sees its profits
and stock prices surge. (Adobe Stock photo)

U.S. top egg supplier Cal-Maine attributes its soaring profits and doubled stock price to hen shortages caused by bird flu, combined with savvy business practices. Lawmakers and regulators aren't buying that response as the full story. Patrick Thomas of The Wall Street Journal reports, "The Justice Department kicked off an investigation into the nationwide increase in the cost of eggs and is probing Cal-Maine’s and other companies’ pricing practices."

Cal-Maine explains its surging profits -- $508 million just in the first quarter of 2025 -- as the natural outcome of national egg shortages brought about by the severe avian flu outbreak, combined with its savvy production and investment strategy. The company's first-quarter profit was more than three times higher than the profit in its first quarter of 2024 -- $148 million. The company's chief executive, Sherman Miller, says, "He can’t ignore the rising animosity, and he’s ready to set the record straight," Thomas writes.

Miller told Thomas, “Someone has to get blamed for everything. They’re looking for a villain. . . . We’ve done absolutely everything we could do to supply every egg we could under circumstances we can’t control."

But what Cal-Maine can control matters because eggs aren't like other commodities. "The egg industry relies on contracts between a customer, like Walmart or Kroger, that wants to buy a certain amount of eggs from a supplier like Cal-Maine," Thomas explains. "Instead of producing all the eggs it sells in a year, Cal-Maine has historically handled spikes in demand by purchasing 10% to 25% from other suppliers on private exchanges such as the online Egg Clearinghouse."

Skeptics question Cal-Maine's private online exchange purchases. "Critics like Farm Action say that by buying eggs from rival producers on the Egg Clearinghouse, Cal-Maine contributes to limiting supply," Thomas reports. "This also can inflate prices because those purchases factor into the calculation for the industry benchmark prices, critics say."

Others wonder why Cal-Maine didn’t just "produce more eggs or decide to lower its prices during the avian-flu outbreak," Thomas writes. But company planners see the spike as temporary. "Historically, eggs tend to retail for $1 to $2 a dozen, and Cal-Maine executives say the sky-high prices probably won’t last."

Questioning Cal-Maine's pricing practices isn't new. "In 2023, a federal jury in Chicago decided that Cal-Maine and other big egg producers restricted supply in the early 2000s to raise prices, which inflated costs for companies that buy lots of eggs to make food products," Thomas adds. Several food companies were awarded $53 million in damages. Cal-Maine contested any claims of wrongdoing.

Americans will have to wait for egg prices to decrease; some are dyeing potatoes or onions instead

Dyeing Easter eggs is a tradition some families will
continue no matter the price of eggs. (Adobe Stock photo)

The price of a dozen eggs continues to defy gravity by going up and staying up, despite "a drop in wholesale prices and no egg farms having bird flu outbreaks," report Josh Funk and Dee-Ann Durbin of The Associated Press. "U.S. egg prices increased again last month to reach a new record-high of $6.23 per dozen despite President Donald Trump’s predictions" that prices would decline substantially. 

The continued spike in egg prices means, "businesses that rely on eggs might not get much immediate relief," AP reports. USDA Secretary Brooke Rollins dubbed Easter "the Super Bowl of eggs" and reiterated that it may take a while longer for the price of eggs consumers pay to tip downward and balance with the wholesale market. In 2024, Americans spent roughly $45 million on eggs for Easter.

University of Arkansas agricultural economist Jada Thompson "said the wholesale prices did not start dropping until mid-March, so there may not have been enough time for the average price for the month to decline," Funk and Durbin write. "And grocery stores may not have immediately passed on the lower prices."

Some areas of the country are seeing lower prices. Funk and Durbin explain, "At a Walmart in Richmond, California, a dozen eggs were $6.34. In Omaha, Nebraska, Walmart was selling eggs for $4.97 per dozen. California requires eggs sold to be cage-free; Nebraska doesn’t."

Myhometravels photo

In some areas of the country, Americans are getting creative with their Easter dyeing choices. "Videos on how to dye marshmallows, potatoes and even onions have begun to circulate on social media and news websites," reports Korsha Wilson of The New York Times. " For the first time in [this farm's] 40-year history of the hunt, the eggs laid on the green grass of the farm will be made of plastic, filled with a coupon for a free ride on their carousel."