The Egg Market Crisis: Understanding the Deeper Issues Behind Rising Prices

Fewer than 60 companies supply a staggering 87% of the eggs found on store shelves across the United States, as reported by the American Egg Board. As corporations increasingly dominate the agricultural landscape, owning one-third of all family farms in the country, the current egg shortage and soaring prices cannot be solely attributed to factors like avian influenza. According to farmer Jeff Bender, the situation is far more complex and hints at systemic issues that threaten future food security.

The Current Egg Consumption Forecast

The USDA Economic Research Service estimates that the average American will consume approximately 22.6 dozen eggs in 2025, a sharp decrease from previous years. This shift is occurring alongside alarming price hikes; by the end of January, the retail price for a dozen eggs surged to 53% higher than the previous year. Experts anticipate another 41% increase in prices this year. This trend isn’t limited to eggs, as consumers face higher prices for nearly all grocery items while corporations report record profits.

Historical Context of American Agriculture

For centuries, agriculture has been the backbone of American prosperity. In the early 20th century, nearly 90% of the U.S. workforce was employed in farming or related fields. By 1910, there were around 6.4 million farms in the country, almost all run by individual families.

However, this landscape has dramatically changed. As of 2022, farmers and ranchers represent only 1.1% of the labor force, according to the USDA. Bender suggests that the few farm owners who produce 80% of our food could fit into a large football stadium.

The Shift Toward Corporate Farms

As early farms served the specific purpose of sustaining local homesteads, their evolution into larger-scale operations benefited from mechanization and technological advancements. This period of growth was punctuated by The Great European War, which increased demand for U.S. agricultural products. Farmers heavily invested in expanding their operations.

Yet, a combination of economic factors—such as severely depressed prices, the stock market crash, and World War I veterans’ aversion to farming—led many to bankruptcy. The Agricultural Adjustment Act of 1933 initiated federal controls over crop sizes and provided subsidies that continue to impact modern farming.

The Current Landscape of Farmland Ownership

Today, more than 60% of farms in the U.S. are classified as family-owned, but the reality is that 31% of farmland—totaling 283 million acres—is controlled by private companies, a situation exacerbated by foreign ownership. This concentration of land ownership has left fewer people with traditional farming knowledge and has led to a lack of crop diversification. Instead of a variety of crops, many farmers now focus on just one or two.

The Impacts of Avian Influenza

While avian influenza is undoubtedly affecting the egg supply, the larger concern lies within these 59 corporate entities. A significant disease outbreak at one or two of these major suppliers poses a catastrophic risk to the nation’s egg supply. Despite egg production only decreasing by 3-5% over the past three years, egg prices have soared by 200-300%, revealing a discrepancy that raises eyebrows about potential market manipulation. Recently, the Department of Justice announced an investigation into price-fixing among egg distributors.

Dependence on Foreign Goods

The COVID-19 pandemic served as a wake-up call regarding U.S. reliance on foreign goods. Historically, America has been a major food supplier to Europe, but as of 2023, we have become net food importers, spending $49 billion more annually on imports than we earn from exports. Our cattle inventory is reportedly at its lowest level in nearly 75 years, forcing consumers to rely on imported beef from countries like Australia and Canada, further complicating our food supply chain.

Looking Ahead: A Call to Action

If the U.S. does not take measures to rectify these imbalances, we may be on the verge of a crisis. The concentration of ownership among a few corporations over essential food products indicates a dire need for change. Without policies to support independent farmers and diversify production, the future of American agriculture hangs in the balance.

Jennifer Allen is a retired professional chef and long-time writer.