US egg prices have dropped to 81 cents per dozen in 2026, representing a 38% decline below the 20-year inflation-adjusted average and a dramatic reversal from 2025's historically high prices driven by avian influenza. With producer values now falling below production costs and feed expenses expected to increase 8%, egg producers face significant financial pressure.
- Large eggs averaged 81 cents per dozen from January-August 2026, down 38% below the 20-year inflation-adjusted average of $1.31 per dozen
- Producer values fell to approximately 48 cents per dozen, which is below the cost of production
- Feed costs are projected to increase 8% next year, with corn prices rising 16% and soybean meal up 5%
- Breaking stock prices hit 16 cents per dozen, the lowest nominal price in 20 years, compared to a 20-year average of 84 cents
- The 2025 price surge was driven by both reduced supply from highly pathogenic avian influenza (HPAI) and strong consumer demand
U.S. egg producers have gone from historically high prices in 2025 to some of the lowest inflation-adjusted egg prices in two decades in 2026, while an expected increase in feed costs could put additional pressure on producer margins.
The January-August 2026 average price for large eggs delivered to a Midwest warehouse was about 81 cents per dozen, 38% below the inflation-adjusted 20-year average of $1.31 per dozen, according to data presented during the U.S. Egg Markets and Costs session on September 28 at the Georgia Layer Conference.
The decline represents a dramatic reversal from 2025, when highly pathogenic avian influenza (HPAI) and strong demand contributed to exceptionally high egg prices.
"Last year we were talking about the crazy high markets, and this year we're at a 20-year low," said presenter Maro Ibarburu, research scientist at the Egg Industry Center at Iowa State University.
Producer values have fallen even further. The producer value is calculated by taking the value of eggs delivered to the store or warehouse and subtracting costs including washing, packaging and transportation.
Ibarburu estimated the 2026 four-region average producer value at approximately 48 cents per dozen. That value is "way below the cost of production," Ibarburu said.
Feed costs could increase 8%
Low egg prices could become more challenging for producers if feed prices increase as expected. Relief is unlikely to come from the input side.
Feed has represented approximately 54% of the cost of producing eggs during the past five years, making corn and soybean meal prices particularly important to layer producer profitability.
U.S. Department of Agriculture projections cited during the presentation indicate corn prices could increase 16% next year while soybean meal prices increase 5%. Based on those projections, Ibarburu estimated layer feed costs could increase approximately 8%.
The potential increase comes after corn and soybean meal prices retreated from the elevated levels experienced several years ago.
Further-processed egg prices also tumble
Weakness is not limited to the shell egg market.
Approximately 70% of U.S. eggs are sold as shell eggs, while the remaining 30% are broken for further processing into liquid, frozen, chilled or dried egg products.
The January-August average price for breaking stock was just 16 cents per dozen, the lowest nominal price for the period in 20 years. The comparable 20-year average was 84 cents per dozen.
Liquid whole egg prices showed a similar decline. The January-August average was 16 cents per pound, also the lowest level in 20 years, compared with a 20-year average of 74 cents per pound for the same period.
Dried whole egg prices have been more stable. The January-August price of approximately $4.20 per pound was close to the 20-year average of $4.24 per pound. Ibarburu attributed that stability to the product's shelf life of up to two years.
HPAI helped drive 2025 price surge
The extraordinary egg prices experienced in 2025 reflected more than declining supply from HPAI.
Ibarburu said the 2022-25 HPAI outbreak was more sustained than the 2015 outbreak, when the layer flock recovered more quickly.
Strong consumer demand compounded the supply problem.
The combination of reduced egg supplies and a prolonged period of above-average demand contributed to the much larger price increases seen during the latest HPAI outbreak.
Cage-free reaches 48% of US flock
Meanwhile, the transition toward cage-free production continues, although at a slower pace than in previous years.
The U.S. had approximately 151 million cage-free layers in the most recent data presented, representing about 48% of the total flock. Of those birds, approximately 129 million were nonorganic cage-free layers and 22 million were organic.
Cage-free growth slowed during the worst period of the HPAI outbreak but has since returned to a rate similar to the period before the outbreak.
Producer expectations suggest the transition will continue gradually rather than result in a near-term elimination of conventional production.
An annual industry survey cited during the presentation found producers expect approximately 55% of the U.S. layer flock to be cage-free by 2030, with conventional housing accounting for the remaining 45%.
By 2035, producers expect cage-free's share to increase to approximately 60%.
The result is a U.S. egg industry facing two transitions simultaneously: continued long-term movement toward cage-free production and a much more immediate adjustment from the historically high egg prices of 2025 to a market in which producer values have fallen below production costs.
