Egg prices in Michigan have skyrocketed, surging over 50% from last year, with even sharper increases in recent months. While avian influenza (H5N1) has certainly impacted supply, evidence suggests that large agribusinesses are using the crisis to drive up prices beyond what is necessary, squeezing consumers and small businesses alike. As Michigan enforces its new cage-free egg law, the transition is being met with both corporate resistance and price manipulation. The reality is that this economic pressure is temporary, and in the long run, a shift to more ethical, locally produced eggs will benefit everyone—except the industrial farming giants controlling the market today.
On December 31, 2024, Michigan’s cage-free law took effect, requiring all eggs sold in the state to come from farms meeting humane housing standards. This law mirrors California’s Proposition 12 and is part of a broader national trend pushing for more ethical farming practices. However, consumers and businesses have felt the sting of rising costs.
Shafer Farms in South Bend, which supplies eggs to Hopper’s Family Restaurant in Berrien Springs, had to increase prices from $4 to $5 per dozen, a steep jump in just one week. Peggy Hopper, the restaurant’s owner, expressed concerns in an interview with local TV (WSBT) about passing these costs on to customers, as price hikes could hurt small businesses that rely on affordable ingredients. Large farms, unwilling to invest in necessary upgrades to meet the new standards, are instead outsourcing eggs from other cage-free producers, driving up prices even further.
At the same time, the avian flu outbreak continues to devastate poultry populations. H5N1 has led to the culling of millions of egg-laying hens nationwide, further tightening supply. While this is a legitimate factor in price increases, there is some speculation among consumers that corporations are exploiting the crisis to inflate profits beyond what is necessary.
Despite claims that the rise in egg prices is driven purely by supply shortages, major producers have seen massive profit increases since the bird flu outbreak began as far back as 2022. Farm Action, a nonprofit advocating against corporate farming monopolies, highlighted in a letter to the Federal Trade Commission in January of 2023 that companies like Cal-Maine Foods—one of the largest egg producers in the U.S.—reported astronomical profit increases that far exceed the impact of lost chickens.
According to the letter, Cal-Maine Foods, which controls 20% of the retail egg market, reported a 110% increase in quarterly sales and a 600% surge in gross profits compared to the same period the previous year.
This raises an obvious question: If flu-related losses were the sole reason for rising egg prices, why are these companies making more money than ever before? The answer lies in the power these corporations have over the egg market. With 20 companies controlling 95% of the industry, they dictate prices and use crises—like the avian flu or new regulations—as an excuse to push costs higher than necessary.
Corporate resistance to ethical farming
As Michigan enforces its cage-free law, major players in the industry are lobbying against it. In Colorado, a similar law is under threat, with bills being introduced to repeal it. Opponents argue that the cage-free mandate is solely responsible for rising prices, yet this overlooks key factors, including price gouging and disease outbreaks.
Some industry-backed experts are even claiming that free-range poultry is to blame for avian flu outbreaks, stating that allowing birds more space increases their risk of exposure to infected wild birds. This argument is flawed—if anything, large-scale confinement farming increases the risk of disease spreading rapidly. When thousands of birds are housed together, one infection can wipe out an entire facility, necessitating mass culls. Yet corporate farms continue pushing this narrative to undermine support for cage-free and locally sourced eggs.
The remedy: Support local farms and farm markets
Consumers in Michigan are currently facing immediate price hikes, but this squeeze is temporary. As the supply chain adjusts to new regulations and more farms transition to cage-free operations, prices will stabilize. This period of adjustment presents an opportunity for short-term relief, as consumers can seek out local farmers and small producers, who often have more stable pricing and transparent sourcing practices. Over time, a more ethical and sustainable system will reduce the risk of devastating disease outbreaks, improve food quality, and create a market that values both animal welfare and fair pricing. Additionally, by supporting local farms and farmers’ markets, consumers can push back against the dominance of massive agribusinesses that manipulate pricing for profit.
Michigan’s egg industry is at a crossroads. Large corporations are using a combination of avian flu, new regulations, and market control to artificially inflate prices, creating undue hardship for consumers and small businesses. Yet this crisis also provides a chance to shift toward a better, more sustainable system.
If consumers continue supporting local farms and advocating for fair pricing, the power of these agribusiness giants will weaken over time. This isn’t just about eggs—it’s about the future of food production in America. The more we invest in ethical, transparent, and locally sourced agriculture, the more sustainable our food supply will become. In the end, waiting out this temporary squeeze and resisting corporate fear tactics will result in a win for everyone—except the billion-dollar agribusinesses that thrive on market manipulation.
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