Summary of "Eggs Are Still Expensive. Is This Company to Blame?" – The Journal Podcast
Introduction
In the May 22, 2025 episode of The Journal, hosted by Annie Minoff and Patrick Thomas, the spotlight is cast on the persistent rise in egg prices and the role of Cal-Maine Foods, America's largest egg producer. This detailed exploration delves into the factors driving up egg costs, the company's substantial profits amidst a national shortage, and the ensuing backlash from consumers, politicians, and advocacy groups.
Background: Egg Consumption and Bird Flu Impact
The episode begins by highlighting the quintessential place of eggs in American households. Patrick Thomas notes, “[People eat] about an egg a day roughly, and a hen produces roughly an egg a day. So the easiest math to think of the egg industry is that everyone has their own hen” (00:17). However, recent waves of avian influenza have devastated the poultry population, resulting in the deaths of over 150 million chickens nationwide. This significant reduction in supply has been a primary driver behind the historic surge in egg prices, leading to widespread consumer frustration.
Cal-Maine's Operations and Strategic Positioning
Cal-Maine Foods, despite being the largest egg producer in the U.S., remains relatively obscure to the average consumer as their eggs are marketed under various local brand names. Patrick Thomas describes a tour of one of their vast facilities in rural Mississippi, emphasizing the scale of their operations: “They hold about 750,000 hens” (03:20). With dozens of similar facilities nationwide, Cal-Maine produces approximately 12 billion eggs annually, supplying one out of every five eggs consumed in America.
Financial Performance and Profit Surge
The core of the episode investigates Cal-Maine’s financial success amid the egg shortage. Patrick Thomas reveals, “Cal Maine Foods... just posted a massive profit, $509 million. That is quarterly profit for the same quarter last year” (00:53). Their strategic biosecurity measures, implemented proactively since anticipating the bird flu outbreak, have allowed them to maintain production levels while competitors struggled. This resilience has translated into record-breaking profits and a skyrocketing stock market performance, with shares increasing by 64% and the company's market value doubling in two years.
Criticisms and Accusations: The Alleged Price Gouging
As Cal-Maine reaped the benefits of high egg prices, the company became the target of severe criticism. Social media influencers on platforms like TikTok accused them of price gouging, while political figures such as Congressman Ro Khanna echoed these sentiments. Consumer advocacy groups, notably Farm Action, have been vocal, asserting that Cal-Maine’s dominance exacerbates the egg shortage by not increasing production sufficiently to meet demand. Patrick Thomas summarizes the criticism: “They say that this company has used its scale to influence the price of eggs or production, or they're not doing enough to put more hens in production and alleviate the national egg crisis” (09:03).
Cal-Maine's Defense and Response
In response to the allegations, Cal-Maine's CEO Sherman Miller presented a robust defense. During an exclusive interview, Miller stated, “The villain is a very nasty high path avian influenza virus” (05:31), attributing the egg shortage primarily to factors beyond the company’s control. He elaborated on the complexities of egg production, explaining that increasing the number of hens is not a straightforward solution due to the biological and economic constraints involved. Miller emphasized, “Eggs are a commodity. They’re not widgets that we can just go out there and turn up the machine or run an extra shift and produce more” (10:48), underscoring the challenges in rapidly scaling production without incurring losses.
Cal-Maine has indeed expanded its operations by adding 14% more hens and increasing chick hatching by 24% over the past year. However, Miller cautions against overexpansion, warning that an oversupply could lead to significant financial losses if egg prices were to fall: “If demand eventually falls, the company could find itself sitting on too many eggs” (12:22).
Legal History and Ongoing Investigations
The episode also touches on Cal-Maine’s contentious legal history, which includes a 2023 federal jury ruling that accused the company and other major egg producers of restricting supply in the early 2000s to inflate prices—a charge Cal-Maine has consistently denied. Additionally, in 2020, the Texas Attorney General sued Cal-Maine for alleged price gouging during the COVID-19 pandemic, a case that remains unresolved. Currently, the Department of Justice has launched an investigation into Cal-Maine and other egg producers, requesting the preservation of documents related to pricing strategies (10:07).
Conclusion and Future Outlook
As the episode draws to a close, Patrick Thomas offers a nuanced perspective: “I don't know if I'd tell them who to blame, but I would say... the bird flu is the culprit of all of this... egg prices are on their way down and will probably come down, but they might spike back up again” (15:51). The hosts suggest that the egg market has entered a state of volatility, largely influenced by ongoing avian influenza outbreaks, which may lead to persistent fluctuations in egg prices. This new normal will likely require consumers and producers alike to adapt to the challenges posed by unpredictable supply chains and market demands.
Notable Quotes
- Patrick Thomas (00:17): “People eat about an egg a day roughly, and a hen produces roughly an egg a day. So the easiest math to think of the egg industry is that everyone has their own hen.”
- Sherman Miller (05:31): “The villain is a very nasty high path avian influenza virus.”
- Sherman Miller (10:48): “Eggs are a commodity. They’re not widgets that we can just go out there and turn up the machine or run an extra shift and produce more.”
- Patrick Thomas (15:51): “The bird flu is the culprit of all of this. Egg prices are on their way down and will probably come down, but they might spike back up again.”
Final Thoughts
This episode of The Journal provides a comprehensive examination of the intricate dynamics within the egg industry, highlighting how external factors like avian influenza can intersect with corporate strategies to influence market prices. By presenting multiple viewpoints—from Cal-Maine's defenses to the mounting criticisms—the podcast offers listeners a balanced understanding of the challenges and complexities that underpin America's egg crisis.