A nationwide recall involving 20 million organic and cage-free eggs has rattled both consumers and markets, threatening to further strain an already fragile egg supply system. With egg prices still 40% higher year-over-year and ongoing disruptions from avian flu and policy shifts, this recall could have wider repercussions.

What Triggered the Recall?

In early June, August Egg Company issued a voluntary recall for 1.7 million dozen eggs—approximately 20 million eggs—after a multistate outbreak of Salmonella Enteritidis linked to its products sickened at least 79 people and hospitalized 21.

The recalled eggs were sold across nine states through major grocery chains such as:

1. Walmart
2. Safeway
3. Ralphs
4. Raley’s
5. Smart & Final

These eggs were labeled organic and cage-free, a fast-growing segment in the market. The affected packages carry plant codes P-6562 or CA5330, with sell-by dates ranging from March 4 to June 4, 2025 (and up to June 19 for Walmart).

Response from August Egg Company

The company has halted all shell egg distribution from its Hilmar, California facility and is diverting its egg supply for pasteurization, a process that eliminates pathogens such as Salmonella. An internal review is underway, and federal investigations by the FDA and CDC are ongoing.

Why This Matters More Than Usual

This isn’t an isolated food safety issue — it’s hitting an industry already grappling with:

1. Flock Losses from Avian Flu

Over 36 million hens were culled in 2025 due to avian influenza outbreaks, drastically reducing national egg production capacity.

2. Legislative Changes

New cage-free mandates in states like Colorado, Michigan, Utah, and Arizona have tightened production flexibility. These regulations add pressure to meet specialty egg demand despite supply chain disruptions.

3. Market Volatility

While egg prices dropped slightly between April and May, they’re still over 40% higher compared to last year. With one of the major suppliers offline, market volatility is likely to spike again.

According to the USDA’s June 20 Egg Market Overview:

1. National loose egg prices: $2.73/dozen
2. California cage-free wholesale: $3.09/dozen
3. Retail ad prices (conventional eggs): $3.60/dozen, a 44% increase from the previous week

What Consumers Should Do

If you’ve recently purchased eggs, especially organic or cage-free ones, check the packaging for:

• Plant Codes: P-6562 or CA5330
• Julian Dates: 032–126

If your carton matches the recall:

• Do not consume the eggs
• Dispose of them safely or return to the store for a full refund

Stay updated via the FDA’s food safety alerts or your grocery store app’s recall notifications.

What’s Next?

• The FDA continues to trace contaminated shipments and monitor the outbreak
• Retailers are adjusting supply chain contracts and pricing ads
• Egg processors are importing stock to help bridge the shortfall
• Inventories are shrinking: Large shell eggs down by 6%, cage-free stock down by 7.5%

The next few weeks will be critical to determine if the market stabilizes or if this recall fuels panic buying, exacerbating price inflation further.

The Bigger Picture

This recall isn’t just a health scare. It underscores how sensitive the U.S. egg industry is to supply chain disruptions — from disease outbreaks and regulatory changes to consumer panic.

As the sector works to balance safety with stability, consumers are reminded to:

1. Stay informed
2. Read labels
3. Keep receipts
4. Practice safe food handling

Even a “cracked link” in the supply chain can ripple across retail shelves, consumer budgets, and industry forecasts.