Egg prices plummet in August - A vast "oversupply" has led to the situation

By Jeff Ishee

Wholesale egg prices have fallen sharply — roughly 67% over the past month. In some areas, wholesale eggs are as low as 36 cents per dozen. Retail prices for eggs at grocery stores such as Walmart are down to $1.67 per dozen in many stores.

This is quite different from the situation in late 2024, when wholesale eggs in the Midwest hit $5.57 per dozen and retail prices in California hit $8.85 per dozen. The spike in 2024 was blamed largely on a shortage of hens caused by outbreaks of avian influenza.

Image credit - Virginia Farm Bureau Federation

Broad industry analysis indicates the current oversupply situation has been caused by the U.S. egg market swinging from tight supplies to a significant surplus.

Consumer demand, meanwhile, has softened. The USDA’s August 2026 market reports show the same pattern nationwide: more hens, more eggs, bigger inventories, and weaker buying interest, all pushing prices down.

Why prices collapsed in August

In general terms, prices collapsed because flock size is up. The productive table‑egg layer flock in the United States is over 305 million hens, with daily production around 466,000 cases — meaning far more eggs entering the market. Inventories of eggs are up significantly. Shell‑egg stocks rose 2–6% in early August, especially in Large‑grade eggs, creating a surplus that pushes prices down.

Demand, meanwhile, has also softened. USDA’s Shell Egg Demand Indicator dropped, showing weaker movement through marketing channels. Retail interest was described as “light to moderate,” not enough to absorb the supply.

Another reason prices fell in August is that retail promotions shifted. Grocery stores increased ad space for cage‑free, organic, and specialty eggs, while conventional eggs saw weaker promotional support — reducing demand for the cheapest categories.

Bottom line

Egg prices are down because supply surged and demand didn’t keep up. Inventories rose, retail interest softened, and processors have more than enough eggs — all classic conditions for a rapid price drop.