Egg prices are plunging due to oversupply — and producers say margins are taking a hit as costs rise

Key points

• Customers shop for eggs at an H-E-B grocery store on May 11, 2026 in Austin, Texas.
• Egg prices are finally cooling in a welcome shift for consumers.
• But now a new challenge is sending producers scrambling: they have too many eggs at a time when their input costs are rising.
• As the market swings from last year's avian flu-driven shortage to a growing oversupply, producers say lower grocery store prices are masking the squeeze from cost inflation.
• "A year ago, all anybody could talk about was how expensive eggs were because a lot of birds were unfortunately lost," said Thomas Flocco, CEO of egg producer Pete & Gerry's.