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, a drop in wholesale prices and no egg farms having bird flu outbreaks.
The increase reported Thursday in the Consumer Price Index means consumers and businesses that rely on eggs should not anticipate immediate relief. Demand for eggs is typically elevated until after Easter, which falls on April 20.
Industry experts were expecting the index to reflect a drop in retail egg prices because wholesale egg prices dropped significantly in March. 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 even if prices stared to fall at the end of the month. And grocery stores may not have immediately passed on the lower prices.
Bird flu outbreaks were cited as the major cause of price spikes in January and February after more than 30 million egg-laying chickens were killed to prevent the spread of the disease. Only 2.1 million birds were slaughtered in March and none of them were on egg farms.
The farms that had fall outbreaks have been working to resume egg production after sanitizing their barns and raising new flocks, but chickens must be about six months old before they start laying eggs. Thompson said those farms did not come back online as quickly as anticipated. In the latest U.S. Department of Agriculture numbers, there were only about 285 million hens laying eggs nationwide as of March 1, down from 293 million the previous month. Before the outbreak, the flock typically numbered more than 315 million.
Trump tried to take credit for the lower wholesale egg prices the USDA reported in recent weeks. But experts say the president's plan to fight bird flu by focusing on strengthening egg farmers' defenses against the virus is likely to be more of a long-term help.
"I think there are lots of people who are looking to see the egg prices coming down because they wanted to call it a win. And I think it's a loss for everybody. I think we all want to see egg prices come down," Thompson said.
Egg prices are still expected to decline later this spring, but the latest numbers could also increase scrutiny of Cal-Maine Foods, which provides 20% of the nation's eggs, and other large egg producers.
Earlier this week, Cal-Maine acknowledged it is being investigated by the antitrust division of the U.S. Department of Justice, which is looking into egg price increases. Cal-Maine said it is cooperating with the investigation.
In its most recent quarter, which ended March 1, Cal-Maine said its net income more than tripled to $508.5 million compared to the same period a year ago. The company said its revenue nearly doubled to $1.42 billion, largely because of higher egg prices.
Since the current bird flu outbreak began, more than 168 million birds have been slaughtered, most of them egg-laying chickens. Any time a bird gets sick, the entire flock is killed to help keep bird flu from spreading. That can have an effect on the egg supply because massive egg farms may have millions of birds.
The disease is difficult to control because it is spread easily through the droppings of wild birds that carry the avian flu virus. Bird flu has also inflected other animals, including dairy cattle.
Egg prices hit $5.90 in February one month after setting a record at $4.95 per dozen, according to the U.S. Bureau of Labor Statistics. But shoppers encountered prices much higher than that in some places; in California, the price per dozen topped $12 in some stores.
Earlier in the outbreak, egg prices spiked to hit $4.82 in January 2023 before gradually falling as low as $2.04 per dozen in August 2023. Generally, prices have since increased steadily.
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Associated Press writer Dee-Ann Durbin contributed to this report.
