Will Broiler Eggs Make or Break the Egg Industry?

The Food Industry Looks for Solutions to a Tightening Egg Supply

The National Chicken Council (NCC)  has asked the Food and Drug Administration to consider allowing surplus broiler eggs to enter the United States food supply. Broiler eggs have been banned from U.S. food products since 2009. Though the NCC has previously petitioned the FDA to make this allowance, requests have been denied due, in large part, to established food safety regulations..  

Will America’s tight egg supply make the FDA reconsider its stance on the safety of surplus broiler eggs? Or is the petition just a drop in the bucket of a much larger problem in our food supply?

Surplus Broiler Eggs Banned in 2009

The initial decision by the FDA to ban surplus broiler eggs grew out of a mission to suppress salmonella and protect consumers from potentially unsafe food sources. Since broiler eggs are initially stored at higher temperatures than layer eggs the FDA believed the risk of salmonella to be too great. While the ruling has been effective in regard to table eggs and food safety, continuing to keep broiler eggs out of the food supply could be contributing to an increasingly tight egg inventory here in the U.S.

Petitions to reassess the 2009 ruling call for the FDA to consider regulations for table eggs and breakers individually. The NCC argues that pasteurized surplus broiler eggs are safe for human consumption if they are sold as breaker eggs and could decrease reliance on table eggs for products like breads, pastas dressings and sauces. According to a risk assessment study published in 2020 which analyzed the safety of pasteurized broiler eggs, the FDA could have sufficient data to modify current regulations and release surplus eggs back into food supply as breakers.

Will Broiler Eggs Make a Difference?

This isn’t the first time egg supplies have been tight, primarily because of HPAI outbreaks in commercial facilities, and it isn’t the first time the NCC has asked the FDA to reexamine regulations for the sake of creating supply assistance. The question is, will the addition of broiler eggs into the food supply create meaningful relief for the egg industry?

Everyone in the food industry is keeping a close eye on the spread of HPAI because it is targeting a food source that has traditionally been low in cost, highly nutritional and used in a wide variety of food products.  In fact, eggs are a cornerstone of health and nutrition around the world. While grocery retailers are limiting purchase amounts in an effort to safeguard supplies, restaurants are confronting price increases and supply shortages that affect batters, breads, breakfast specials, sauces, pastas and salads. 

Allowing surplus broiler eggs into the food supply would add 400 million eggs annually in the form of pasteurized food ingredients. The otherwise wasted eggs could serve to protect table egg supplies and play a part in bringing down egg prices. It’s an appealing idea to restaurant owners who saw egg prices climb almost 37% in 2024 and are braced for another 20% increase expected in 2025.  Those numbers alone could mean that any additional option would be welcome. If it can prevent restaurants having to remove menu items or grocery stores from having to ration eggs for consumers it seems like a worthwhile policy modification.

However, the United States consumes over 90 billion eggs every year with approximately 30%, or 27 billion, of those being liquid, dried or frozen egg products that come from breakers. Can an additional 400 million eggs put a dent in the industry? Surplus broiler eggs end up in landfills and on their way they  create an expense that is never recouped. Arguably, if they don’t have to end up as waste it is reasonable for the FDA to approve them as breakers.  But it is a stretch to think the surplus broiler eggs could revamp the egg industry.

The NCC realizes that releasing surplus broiler eggs into the food supply will not create an overnight change in egg prices. Rather, they hope it will contribute to relieving pressure on a volatile and much needed element of our food supply chains and generate additional revenue for the broiler industry which has absorbed the over $25 million loss since 2009.

Is the Egg Industry Already Evolving in Light of HPAI?

Restaurants and retailers have already begun exploring other options including purchasing eggs from small, locally owned farms and even exploring plant based egg options. In terms of cost, buying wholesale isn’t always the cheapest option anymore.  Small farms who experience less disruption in supply can offer consistent pricing.  A California restaurant owner claims the issue is not just that egg prices are high, it's that sometimes he can’t get the quantity of eggs he needs to make the items on his menu. Buying more frequently but locally has proved to be more cost effective than relying on wholesale suppliers.

The increased demand for laying hens around the country could point to this industry evolution. The average consumer appears to find more reliable pricing and supply from local farmers than from the grocery store and small farms are building their flocks to take advantage of the changing dynamic. Meanwhile, the plant-based egg alternative industry saw 30% growth in 2024. Whether it's a trend away from commercial farming or simply budget minded consumers who want to map out their weekly grocery bill, consumer behavior appears to also signal that the egg industry is changing. 

As spring bird migrations get into full swing and we enter the Easter season eggs are on the mind.  Retailers are already bolstering holiday egg inventories, and there is a growing concern that consumers will start making panic purchases. Are we ready for what another round of HPAI outbreaks could bring? Small farms may become increasingly important to food security as will broiler surplus eggs, innovative plant based alternatives, and maybe a few menu modifications at some of our favorite restaurants.