New York Attorney General Letitia James has issued a stern warning to businesses against price gouging on eggs and poultry amid a nationwide bird flu outbreak disrupting supply chains and pushing prices to record highs. The avian influenza, impacting poultry farms across the United States since 2022, has spurred the culling of millions of birds, reducing egg production and availability significantly.
According to forecasts from the U.S. Department of Agriculture, consumers can expect egg prices to increase by another 20% by 2025, raising alarm among regulators and shoppers alike. Just recently, prices for organic, free-range eggs have soared to about $10 per dozen at grocery stores throughout New York City, provoking outrage among consumers.
“Eggs are an important grocery staple for families across the state,” James asserted, emphasizing New Yorkers should not be forced to pay exorbitant prices. While acknowledging the challenges presented by the bird flu outbreak, she firmly stated, “This should not be an excuse for businesses to dramatically raise prices.” Her office is diligently monitoring the situation and encourages the public to report instances of excessive pricing to help counteract the trend.
New York’s General Business Law prohibits price gouging—the selling of necessary goods or services at exorbitantly high prices during abnormal market conditions, such as natural disasters or public health emergencies. Businesses found guilty can face penalties of up to $25,000 per violation. This law extends to every layer of the supply chain, including manufacturers, wholesalers, distributors, and retailers.
James' office previously dealt sternly with price gouging; during the COVID-19 pandemic, they secured a settlement with Hillandale Farms Corporation—one of the largest egg producers—to provide 1.2 million eggs to New Yorkers after they inflated prices illegally.
The current bird flu, identified as the H5N1 strain, has hung heavily over poultry farms, resulting in nearly 13 million bird losses. This situation not only impacts egg supply but also raises fears of potential human transmission, especially following the first human death reported last year.
The Centers for Disease Control and Prevention (CDC), alongside U.S. Department of Agriculture and the Food and Drug Administration, has intensified monitoring and containment measures, including stricter biosafety standards and enhanced surveillance.
Prices have already surged significantly; as of January 2025, the national average for a dozen eggs hit $4.15—teetering on the edge of the previous record of $4.82. Since the start of 2025 alone, egg prices spiked by approximately $1.28 per dozen, indicating a staggering increase of over 22%. To combat prices, some retailers have even resorted to imposing purchase limits to manage scarce supplies and prevent hoarding.
“New Yorkers should remain vigilant and report any suspected instances of price gouging,” James urged. Suspicions can be reported through the Attorney General’s website or via the hotline at 800-771-7755.
The financial burden of higher egg prices reflects broader economic effects; it squeezes consumers and spurs increases across multiple sectors. For example, Cal-Maine Foods, the largest egg distributor, reported extraordinary financial growth resulting from these price hikes. For the second quarter of fiscal 2025, Cal-Maine documented net sales of $954.7 million, compared to $523.2 million during the same period last year. This dramatic rise associated with price increases paints concerning pictures for consumers.
Max Bowman, Cal-Maine's CFO, noted, “Our second quarter farm production costs per dozen were 8.5% lower compared to the prior-year period.” Despite this reduction, the wholesale cost for eggs jumped significantly—from $1.66 to $2.57, marking approximately 54% increase.
Critics argue such price inflation appears to be more corporate strategy than necessity, likening it to tactics seen within major oil companies during supply disruptions. The widening gap between production costs dropping and prices sharply rising raises suspicions about whether justifiable factors are at play.
“Cal-Maine’s price gouging poses serious economic ripple effects,” said Gary Freiberg, highlighting the burden on restaurants, bakeries, and food manufacturers who have no choice but to raise their prices due to increased costs of basic commodities. Consumers, too, are feeling the pinch; as groceries rise, they risk changing their consumption habits.
These price hikes distort readings of inflation, which could lead to heightened interest rates and potential job losses as businesses struggle to cope with dwindling sales. With rising operational costs, the pressure is squarely on the shoulders of California law makers like State Sen. John Laird and Gov. Gavin Newsom to deliver meaningful regulations to curb unrestrained price gouging by companies like Cal-Maine. Failure to do so might breed unrest among consumers whose basic needs are increasingly unaddressed.
While avoiding eggs entirely isn’t feasible, some suggest increasingly limiting consumption. Cal-Maine’s tactics, which echo those of the oil sector, appear manufactured purely for profit dictates and disregard the plight of the average consumer. Perhaps it’s time for consumers to resist being passive participants and instead engage with companies like Cal-Maine over their inflated pricing structures.