On June 6, August Egg Company announced the voluntary recall of over 1.7 million dozen eggs after reports of salmonella contamination. The affected eggs were sold across multiple brands, including Walmart, from February to May 2025 in states like Arizona, California, and Illinois.
Although the recall represents a relatively small fraction of the overall egg production, it raises significant concerns about supply shortages and potential price increases. Experts warn that the situation could exacerbate already high egg prices, which have been a key inflation indicator in recent months.
The Economic Implications of the Egg Recall
According to economist Mike Walden from North Carolina State University, the recall could lead to a 25% price hike in the affected regions. Walden explained that the reduced supply of eggs would inevitably increase prices, adding further pressure on consumers already grappling with inflation.
This comes on top of recent record price increases, largely driven by outbreaks of avian flu, which caused a substantial dip in egg production earlier this year. Although egg prices have recently declined, Walden’s analysis suggests that this latest shortage could disrupt the trend, pushing costs higher in the short term.
However, other experts, including Joseph Balagtas, an agricultural economist at Purdue University, believe that the recall’s impact on prices will be minimal. Balagtas argues that the 20.4 million eggs affected by the recall represent only a tiny portion of the over 8 billion eggs produced monthly in the U.S.
While the recall may place some upward pressure on prices, Balagtas believes the overall impact will likely be imperceptible, especially when compared to the significant price fluctuations earlier this year caused by avian flu.
Salmonella Risk Sparks Consumer Safety Concerns
The salmonella outbreak linked to the recalled eggs has also raised public health concerns. The Centers for Disease Control and Prevention (CDC) has reported that the contamination is linked to 79 cases of salmonella infection in 2025.
Although the recall has been widely publicised, consumers are still being urged to return eggs with the affected plant code numbers for a full refund.
In response to the concerns, August Egg Company has committed to improving its internal food safety measures, aiming to prevent similar incidents in the future. The company has stated that it is diverting all eggs from the contaminated facility to a pasteurisation plant to eliminate any harmful pathogens.
