Egg prices are plunging due to an oversupply in the market, with producers saying their margins are taking a hit as costs rise. The market has swung from last year’s avian flu-driven shortage to a growing oversupply, resulting in lower grocery store prices.
A year ago, the high cost of eggs was a major concern, with many birds lost to avian flu, according to Thomas Flocco, CEO of egg producer Pete & Gerry’s. Now, the situation has reversed, with egg prices falling 44.7% year-over-year in March 2026, according to the Bureau of Labor Statistics data.
The downturn follows a period of flock rebuilding, which industry officials say left producers wary of renewed shortages. Flocco said the current oversupply situation is why some grocery stores are selling a dozen eggs for below $1.
The price collapse is creating new pressure on margins at a time when producers can least afford it. Costs for inputs like feed, which spiked in 2022 and 2023, have been elevated for years, and now fuel prices have also spiked due to the war in Iran.
Emily Metz, President and CEO of the American Egg Board, echoed these concerns, noting that feed, fuel, and labor costs continue to weigh on producers even as consumer demand returns and wholesale prices weaken.
Despite the challenges, demand for eggs is strong, with more than four in 10 Americans saying they are more focused on protein than they were five years ago, according to a new survey commissioned by Pete & Gerry’s. The survey also found that two-thirds of Americans eat eggs weekly specifically for their protein, seeking high protein sources.
Shoppers seeking eggs at the grocery store have found them plentiful and at good prices. However, for producers, even strong demand has not been enough to negate oversupply. Sherman Miller, CEO of Cal-Maine Foods, the largest egg distributor in the U.S., said the current price weakness is not demand-related, but rather a result of supply growing faster than demand can absorb.
Metz also said the current price weakness reflects supply growing faster than demand can absorb, driven by flock recovery following avian influenza, small farm growth, and improved productivity. This has not stopped President Donald Trump from taking credit for the drop in egg prices as he tries to promote affordability ahead of the midterm elections this fall.
According to the Bureau of Labor Statistics, the egg market is highly sensitive to changes in supply and demand. As the market continues to evolve, producers will need to adapt to changing conditions to remain competitive, focusing on market trends to guide their decisions.
The situation is complex, with many factors at play. Flocco said that about half of the cost of a dozen premium eggs is feed, and diesel is an immediate impact, as producers need to drive to get the eggs to market.
As the market continues to fluctuate, producers will need to find ways to mitigate the effects of oversupply and rising costs. One possible solution is to focus on premium products, such as organic or free-range eggs, which can command higher prices and help to offset the costs of production, using data-driven decision making to inform their strategies.
For now, shoppers can enjoy the low prices, but producers are bracing for a challenging time ahead. The egg industry is highly competitive, and producers will need to be agile and adaptable to survive.
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