Falling egg demand and rising supply push prices below cost levels
Egg markets in 2026 are facing a major shift as prices fall sharply while production costs stay high. After a severe outbreak of Highly Pathogenic Avian Influenza (HPAI) affected nearly 21 million birds early in the year, cases have now reduced significantly, with fewer than 10,000 birds impacted in May. This has helped egg supply recover.
With supply rising and demand becoming weaker, egg prices have dropped sharply. Retail egg prices are about 62% lower than last year. Prices received by farmers have fallen even more, down by 93%. Breaker eggs, used for liquid egg products, are now priced at just 8 cents per dozen, far below production costs.
The U.S. produced about 105 billion eggs in 2025. Around 86% were table eggs for consumers, while the rest were used for hatching. Of the table eggs, about 30% were breaker eggs and 60% were sold as shell eggs in stores.
Price volatility has been a major issue since 2022 due to repeated HPAI outbreaks. While prices reached record highs in 2025, the current drop shows how quickly the market can change. Farmer returns have also declined, with their share of retail value dropping significantly in early 2026.
Production costs remain high. Data from Iowa State University shows that it costs about 79 cents to produce a dozen eggs, while farmers were getting only 25 to 35 cents per dozen in recent weeks. This gap is causing financial stress.
Smaller farms are more affected because they have higher costs and limited access to equipment. Many may be forced to exit the market, leading to further industry consolidation.
Overall, falling prices and high costs highlight ongoing risks for egg farmers. Without strong risk management tools, many producers remain vulnerable to sudden market changes.
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