THE GREAT EGG ROBBERY: How Big Egg Corporations Are Exploiting American Farmers
Contract egg farmers receive pennies while corporations make billions. Learn how industry consolidation and predatory contracts create a system that harms farmers and consumers.
What You'll Learn in This Article:
How much egg farmers actually earn from each carton you buy
How corporate consolidation in the egg industry has harmed independent farmers
Why egg prices soared despite minimal production impacts from avian flu
The exploitative contract terms farmers must accept to stay in business
What alternatives exist for more equitable egg production
How your egg-buying choices can support a more just food system
That $5 carton of eggs in your grocery cart represents one of the most brazen corporate consolidation schemes in America's food system.
But the true victims aren't just consumers — they're the farmers trapped in exploitative contracts with egg conglomerates amassing record-breaking profits while paying producers pennies.
The Pennies-Per-Dozen Reality
SHOCKING FACT: When you pay $5 for a dozen eggs, contract farmers receive just 26.75 cents — only 5% of the retail price and barely a penny more than they received a decade ago.
Documents obtained from a Cal-Maine contract farming family revealed they receive just 26.75 cents per dozen eggs they produce. These farming families report making less net income today than when they began their operations due to skyrocketing input costs.
As one Cal-Maine contract farmer explained: "We are getting 26.5 cents a dozen, and we are on duty 24 hours a day, seven days a week, 365 days a year."
They estimate needing at least a 6.5 cent per dozen increase just to match the income they received when they started — an adjustment Cal-Maine has refused to make despite record profits.
Corporate Consolidation: The Death of Independence
The American egg industry has undergone massive corporate consolidation that would make a monopolist blush:
Just 59 companies now represent 87% of all egg production
The four largest corporations claim 28% of egg sales
The number of egg producers has collapsed from 2,500 in 1986 to merely 700 today
Mississippi-based Cal-Maine Foods leads this consolidation charge, controlling approximately 20% of the U.S. egg market and managing over 40 million laying hens. The company has purchased more than 20 competitors since 1989, proudly describing itself as a "leader in industry consolidation."
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KEY INSIGHT: Corporate consolidation has left independent egg producers with just two options: invest enormous capital to vertically integrate or become contract growers with little bargaining power.
For independent egg producers, this concentration leaves two options: invest enormous capital to vertically integrate or become contract growers for corporate producers. The trend toward fewer, larger farms has created a system where family farmers have increasingly less bargaining power and autonomy.
The Great Avian Flu Profiteering Scheme
While egg corporations have consistently cited avian flu as the primary driver of price increases, the numbers tell a different story:
Monthly egg production never fell more than 7% from the five-year average
Retail prices jumped 150% from January 2022 to January 2023
Cal-Maine's gross profits increased by a staggering 646% between 2021 and 2023
While American families struggled with inflation and farmers received stagnant compensation, Cal-Maine paid out $250 million to shareholders — 40 times more than the year before.
As one Cal-Maine contract farmer bluntly stated: "Avian flu is not the cause of this problem; it's corporate greed."
One-Sided Contracts: Corporate Power at Work
The contracts offered by major egg corporations provide little room for negotiation. After examining the contract of a Cal-Maine farming family, Farm Action concluded that farmers are forced to either accept the terms offered or seek alternatives—but with Cal-Maine's dominance of the egg market, alternatives are increasingly scarce.
These contracts have been characterized as "generic" and "all one-sided," putting farmers in a precarious position. Beyond the paltry compensation, corporations impose demanding requirements:
Costly facility upgrades with threat of non-renewal
Production quotas tying compensation to hen output
Equipment leases deducting payments for automated systems
Mortality rate targets below 15% for bonus eligibility
The situation has become so untenable that some egg farmers are considering abandoning egg production entirely.
Industry-Wide Exploitation: The 9:1 Ratio
While Cal-Maine's practices are the most documented, available evidence suggests similar compensation structures exist across all major producers. The profit-to-farmer payment ratio hovers around 9:1 industry-wide:
This 9:1 ratio is significantly worse than other agricultural sectors, where poultry maintains a 3:1 ratio and pork production a 2:1 ratio.
A Better Path Forward: Regenerative Alternatives
The industrial egg system isn't just exploiting farmers — it's producing nutritionally inferior eggs while causing environmental damage. But alternatives are emerging that demonstrate how corporate consolidation isn't the only way:
Grassroots Coop: Direct payments of $1.20/dozen via shortened supply chains
Vital Farms: 55¢/dozen base + 15¢ sustainability bonus
Handsome Brook Farms: Revenue-sharing models returning 38% of retail price to farmers
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REGENERATIVE IMPACT: Pasture-raised hens produce eggs with up to 2.5x more omega-3 fatty acids while their manure builds soil health instead of creating pollution.
Regenerative egg production offers a fundamentally different model where:
Hens live on pasture, expressing natural behaviors
Their manure builds soil health rather than creating pollution
The eggs contain significantly higher levels of omega-3s and other nutrients
Farmers receive fair compensation that reflects their work and investment
Take Action: End The Great Egg Robbery
If you want to stop funding this exploitation:
Buy direct from farmers at farmers markets or through CSAs
Look for pasture-raised eggs from companies with transparent farmer payment practices
Support antitrust enforcement against egg industry consolidation
Contact your representatives about investigating egg price gouging
Share this information with friends and family still buying conventional eggs
Every time you purchase eggs directly from local farmers or from companies that pay producers fairly, you're voting for a food system that values the people who produce our food rather than treating them as disposable cogs in a corporate profit machine.
Together, we can build a more just, regenerative, and resilient food system — one egg at a time.
Frequently Asked Questions
How much do egg farmers get paid per dozen eggs?
Contract farmers for major egg corporations typically receive between 24-27 cents per dozen eggs, while the retail price can be $5 or more. Farmers working with regenerative brands can receive up to $1.20 per dozen.
Why did egg prices increase so much in 2022-2023?
While corporations blamed avian flu, production only decreased by 7% while prices rose 150%. Corporate profit reports suggest price gouging was the primary factor, with Cal-Maine's profits increasing 646%
What is corporate consolidation in the egg industry?
Corporate consolidation refers to the process where a few large companies buy up smaller producers to control the market. In the egg industry, 59 companies now control 87% of production, down from 2,500 producers in 1986.
How can I find eggs from farmers who are paid fairly?
Look for eggs from pastured operations at farmers markets, food co-ops, or from brands like Vital Farms and Handsome Brook Farms that publicize their farmer payment structures.