Are eggs in the United States actually expense due to business costs, or is there another reason?
In recent years prices for groceries have been increasing.
Particularly, the average retail price of a dozen, grade A, large eggs in the U.S. have seen a 142% increase.
As a consumer of eggs, I wanted to conclude possible contributors that affected my increase in grocery spending.
Bird Flu (HPAI) outbreaks happened in the US around February 2022 and March 2024(U.S. Department of Agriculture, Animal and Plant Health Inspection Service. (2025, May 22). Highly pathogenic avian influenza emergency response. https://www.aphis.usda.gov/animal-emergencies/hpai).
*Average Price: Eggs, Grade A, Large (Cost per Dozen) in U.S. City Average https://fred.stlouisfed.org/series/APU0000708111
However as of June 2025, the average retail price is still trend above pre HPAI levels. This analysis aims to exam
- US egg supply chain for possible disruptions.
- Unprecedend increases in demand and retail purchases.
- Sustaining scarity or limitions in egg production.
- Price manipulation and increased profits for egg manufactors and wholesellers.
Cal-Maine Foods appears to be the largest producer of eggs in the United States. They service grocery retailers like Walmart & Sam's Club, Kroger, Publix, Albertsons, HEB, Safeway, and Costco. Walmart including Sam's club is their largest customer accounting for 34.0%, 34.2% and 29.5% of net sales dollars for fiscal 2024, 2023 and 2022, respectively.
Cost of doing business has decreased and profit margins have increased since 2024, with 2023 being the best preforming year.
Per the Executive Overview of Results from 2024 & 2022, business growth was driven mainly with acquisitions, production expansion, and revenue growth. In 2024, 2023, and 2022 Cal-Maine has acquired egg production assets(hens, about 4.7 million) contributing to positive revenue growth. Net sales increased from $1.78 billion in 2022 FY to $2.33 billion in 2024 FY. The main contributors are from specialty eggs like cage-free and organic eggs that contributed to 36.5% of 2022 FY revenue to 39.8% respectively.
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2021 - 2022 Feeding costs per dozen rose about 28%. The war bewteen Russian & Ukraine caused increased fuel costs, transportation and fertilizers prices and strong export demand and restrictions further compounded the existing issues that contributed to near-historical low stocks-to-use ratios for corn worldwide and overall higher feed ingredient cost and price volatility. Packaging and labor wages increased due to inflation and COVID related supply chain disruptions. Amortization costs increased as well since more hens were obtained through M&A's.
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2022 -2023 Logistics constaints. Delivery expenses increased due to higher fuel costs and labor costs. Increased competition for workers demanding higher wages and low attendance due to COVID-19 sickness inflationed outbound freight costs.
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2023 - 2024 Total COGS dropped due to lower sales, bird flu. Feeding cost of hend also decreased. Reasons noted were to lower corn and soybean meal prices helped production costs stay low.
- EPS has trended upwards since 2020. Basic EPS has changed from $0.38, $0.04, $2.73, $15.58, $5.70. Higher EPS has been attributed to higher prices and lower expenses due to HPAI.
- Other egg manufactors and wholesellers have been following a similar trend to Cal-Maine's.
- Common stock performance outdid market ETFs. During these reports no common stock buybacks from Cal-Maine or from any affilate occured.
- 2022 Prices natural rose to better align with the supply shock from HPAI. Net cash flows from operations increased from 2021 - 2024, despite HPAI. $26,136, $126,209, $863,010, $451,398.
- Cal-Maine has reported more cash & equivalents for the same fiscal years. $57M, $59M, $293M, and $238M respectfully.
- Cal-Maine is gaining more investor confidence in its long term sustainablity as a market leader. Margins are increasing, cash flow has drastically improved, new bio security projects, and strategic acquisitions are boosting investor confidence.
*U.S. Department of Agriculture, Animal and Plant Health Inspection Service. (2025, May 22). Highly pathogenic avian influenza emergency response. https://www.aphis.usda.gov/animal-emergencies/hpai)
- O’Keefe, T. (2025, January). The challenging and the good for US egg producers in 2025. Egg Industry. https://www.eggindustry-digital.com/eggindustry/january_2025/MobilePagedArticle.action?articleId=2032459
- Dawson, M. (2024, February 5). Top 25 US egg producers in 2024. WATT Global Media. https://www.wattagnet.com/egg/article/15663503/top-25-us-egg-producers-in-2024
- EssFeed. (2024, March 18). USA top 10 egg producers. https://essfeed.com/usa-top-10-egg-producers/
- Hunter, D. (2024, October 29). HPAI impact and insights forum: Poultry and dairy trade impacts [PowerPoint presentation]. U.S. Poultry & Egg Association. https://www.uspoultry.org/HPAI/PDF/Hunter%20Presentation.pdf