Get ready for $5 eggs again after bird flu hits top U.S. producer

Egg prices are likely to start rising again after the top U.S. producer had its first-ever outbreak of deadly avian influenza.

Cal-Maine Foods Inc. in a statement Tuesday said one of its facilities in Kansas tested positive for highly pathogenic bird flu, affecting 684,000 egg-laying hens, or about 1.6% of its flock.

Based in Mississippi, the biggest U.S. producer had previously avoided infections in the worst-ever global outbreak that prompted more than 72 million birds to be killed in the U.S. to slow the spread of the virus.

The latest outbreak adds to worries that a resurgence could start boosting prices for eggs, which have fallen 69% since hitting a record of $5.35 a dozen in the Midwest about a year ago.

Until recently, the expectation was that the industry would be able to rebuild egg supplies.

Now, “prices are due to strengthen on reduced supply,” Stephens Inc. analyst Ben Bienvenu said in a note Wednesday.

Cal-Maine shares jumped as much as 9.9%, the biggest overall gain since 2020, with options volume in the company hitting a record.