Egg producers are facing a margin compression as supply pulls farmgate prices down faster than input costs.

Retail egg costs fell 44.7% in March 2026, with some cartons costing less than a dollar. However, consumers’ relief comes at the worst time for farmers. The U.S. Department of Agriculture’s Agricultural Marketing Service reported that Midwestern producers received 25 cents per dozen for large white shell eggs the week of May 8, a third of the estimated 79 cents per dozen cost of production in April, according to the American Farm Bureau Federation.
“We now have an oversupply situation, which is why some cases a dozen eggs are below a dollar,”

An lengthy attempt to restore flocks after the highly virulent avian influenza outbreaks in 2022 drove egg prices to record highs is behind the surplus. After conditions stabilized, producers expanded capacity out of fear of another shortage, and supply has surpassed demand. American Egg Board President and CEO Emily Metz told that “supply growing faster than demand can absorb, driven by flock recovery following avian influenza, small farm growth and improved productivity.”

Input expenses have not decreased. feed alone costs half the cost of producing a dozen premium eggs, and diesel has risen as the Iran war raises energy prices. Thomas Flocco said “all of those cost pressures are finding their way into our cost structure”. A diesel impact is immediate. We must drive for eggs.” Metz claimed feed, fuel, and labor “did not disappear” just because wholesale egg prices had lowered.

According to the Farm Bureau, the average national price for breaker eggs in April plunged 96% to 8.73 cents per dozen, putting growers under pressure. The Farm Bureau anticipated the farmer’s share of the retail egg dollar at 37.6 cents in the first quarter of 2026, down from a record 82.8 cents in 2025.