Egg prices decline, but at a cost for farmers

STORY: The price of eggs has soared to historic highs in the U.S. and it’s a headache for Frank Hilliker, an egg rancher in California.

While he and other farmers across the state watch in dismay as prices for their product tick up, he says it can’t be helped as farmers also suffer from inflation, and high production costs.

"Our feed prices are pretty much doubled. Our packaging has gone up 25 to 40%. Fuel's gone up. Labor has gone up. Everything's gone up. So it's just been really difficult. But, as long as we can have the egg price high enough to help pay for all that stuff, then we're good."

Another reason for eye-watering egg prices in the country is a record outbreak of avian flu.

The virus has killed nearly 58 million domestic birds since early 2022, according to USDA figures, about 7 million more than the previous record.

But Hilliker says there are signs things might be turning around.

“We're in a lot better position. A lot of the farms that have the avian influenza where they had to depopulate have been repopulated and birds are starting to lay eggs, which was great. We're seeing less and less of a shortage in San Diego.”

While Hilliker believes prices will soon taper off and decrease later this month, customers at his onsite shop still complain about the prices.

“$17 for a dozen eggs? That's ridiculous. I am not going to spend money on something that I know for a fact is is just gouging.”

“Sometimes when I go to the store, I look at the eggs and they're way up in price and sometimes they won't have any. They'll have the cage-free, which are eight $9 for a dozen or so, but it doesn't really affect me. I could go by without eggs.”

NGO Farm Action believes there’s something more nefarious afoot spreading other than the virus. It asked the Federal Trade Commission to probe record-high profits at top egg companies - for signs of price gouging.

Government data said consumers were paying $4.25 for a dozen eggs last December, which was 138% more than the year before.

But over the same quarter, Cal-Maine Foods, which controls a fifth of the retail egg market, reported quarterly sales go up by 110%, and gross profits year-on-year for months ending December, up by 600%.

In a statement, Cal-Maine said that higher production costs, along with avian flu, were contributing to higher prices.