A glut of eggs is putting pressure on suppliers and farmers who are struggling to win back business two years after the worst bout of avian influenza in U.S. history devastated the egg-laying flock.
Poultry farms in the U.S. have fully restocked and rebuilt egg supplies since the outbreak but demand hasn’t kept up. Some buyers who moved to alternative options during the outbreak haven’t returned. Egg prices are near a decade low, a situation that cheers shoppers in grocery aisles but is spurring losses for industry giants and farmers alike.
“We do not expect to see any meaningful improvement until there is a better balance of supply and demand,” said Dolph Baker, the chief executive of Cal-Maine Foods Inc., the largest U.S. egg supplier by sales. The company on Monday blamed the egg glut for its first annual loss in more than a decade, adding that the average price of eggs sold to its customers dropped 42% over the past year.