Egg producers blame the bird flu outbreak for driving prices to record highs, but critics believe giant companies are taking advantage of their market dominance to profit handsomely at the expense of budget-conscious egg buyers. Advocacy groups, Democratic lawmakers and a Federal Trade Commission member are calling for a government investigation after egg prices spiked to a record average of $4.95 per dozen this month. The Trump administration did unveil a plan this week to combat bird flu, but how much that might ease egg prices — a key driver of inflation — remains to be seen. “Donald Trump promised to lower food prices on ‘Day One’, but with egg prices skyrocketing out of control, he fired the workers charged with containing bird flu. Working families need relief now,” Sen. Elizabeth Warren said in a statement. What’s behind the record egg prices? The industry, and most experts, squarely blame bird flu. More than 166 million birds have been slaughtered to contain the virus. Some 30 million egg layers have been wiped out just since January, significantly disrupting egg supplies. The Department of Agriculture’s longstanding policy has been to kill entire flocks anytime the virus is found on a farm. As a result, the number of egg layers has dropped nationwide by about 12% from before the outbreak to 292 million birds, according to a Feb. 1 USDA estimate, but another 11 million egg layers have been killed since then, so it’s likely worse. When prices spiked to $4.82 two years ago and prompted initial calls for price gouging probes, the flock was above 300 million. “This has nothing to do with anything other than bird flu. And I think to suggest anything else is a misreading of the facts and the reality,” American Egg Board President Emily Metz said. “Our farmers are in the fight of their lives, period, full stop. And they’re doing everything they can to keep these birds safe,” Metz said. “This is a supply challenge. Due to bird flu. Nothing else.” Farm Action suspects monopolistic behavior. The group that lobbies on behalf of smaller farmers, consumers and rural communities notes that egg production is only down about 4% from last year and some 7.57 billion table eggs were produced last month, yet some consumers are still finding egg shelves empty at their local grocery stores. “Dominant egg corporations are blaming avian flu for the price hikes that we’re seeing. But while the egg supply has fallen only slightly, these companies profits have soared,” said Angela Huffman, Farm Action’s president. The Justice Department acknowledged receiving the group’s letter calling for an investigation but declined to comment on it. The fact that a jury ruled in 2023 that major egg producers used various means to limit the domestic supply of eggs to increase the price of products during the 2000s only adds to the doubts about their motives now. What do the numbers show? Retail egg prices had generally remained below $2 per dozen for years before this outbreak began. Prices have more than doubled since then, boosting profits for egg producers even as they deal with soaring costs. Most of the dominant producers are privately held companies and don’t release their results. But the biggest, Cal-Maine Foods, which supplies about 20% of the nation’s eggs, is public, and its profits increased dramatically. Cal-Maine reported a $219 million profit in the most recent […]