Why are egg prices lower in Canada and Mexico than in the United States?

Despite the outbreak of highly pathogenic avian influenza in the largest three countries in North America, egg prices in Canada and Mexico have remained lower than in the United States. Consumers may wonder why this is the case.

According to data from Statistics Canada, the average price of a dozen eggs in Canada was around $3.30 in January.

In Mexico, the price for a dozen eggs is approximately $2 or even lower.

Meanwhile, according to the latest federal price data released in the United States, Americans are paying over $5 for a dozen eggs on average.

Although the wholesale price of eggs has slightly decreased since early March according to the U.S. Department of Agriculture, retail egg prices in grocery stores remain high, reflecting retailers’ concerns about supply stability.

Based on interviews with U.S. government officials and trade experts, as well as information provided by foreign agricultural institutions, there are significant differences in the composition of the egg industries in various countries and laws regarding egg production and sales.

It is worth noting that both Canada and Mexico have taken proactive federal measures to control egg prices, while the U.S. has not. Canada has been using protective measures to control egg supply and commodity prices since the 1970s. Facing high inflation, the Mexican government recently implemented price controls on essential commodities, including egg prices.

Since the 1990s, Mexico has been dealing with sporadic outbreaks of highly pathogenic avian influenza. However, Mexico uses vaccines to combat the virus instead of culling large numbers of poultry. Meanwhile, the U.S. is known to have higher hygiene standards for eggs, according to sources from the U.S.

Canada operates a supply-managed agricultural economy with a much smaller population compared to the U.S., resulting in significantly smaller egg production farms operated by Canadian farmers. Smaller poultry houses can prevent large-scale poultry losses in case of outbreaks and the necessity of culling.

As avian influenza continues to impact the U.S. egg-laying flocks, retail egg prices in the U.S. have consistently remained high above the average. In February this year, the average price for a dozen large Grade A eggs purchased by American consumers was $5.90. According to historical data stored by the Federal Reserve Bank of St. Louis, this marks the highest national average price ever recorded.

The main reason for the surge in egg prices is due to frequent outbreaks of avian influenza in commercial egg-producing farms which resulted in culls, leading to a sharp decrease in the U.S. egg-laying population. The USDA statistics indicate around 30.3 million hens were lost due to culling and outbreaks just in 2025.

The USDA now states that due to the significant slowdown in the avian influenza outbreak, egg supply has begun to recover. Still, it remains uncertain when consumers will see a decrease in supermarket egg prices. According to the USDA’s national report on retail egg prices, as of March 21st, the average retail price for a dozen extra-large white eggs from conventionally raised hens was $5.99.

Since the discovery of highly pathogenic avian influenza in China for the first time in the 1990s, the virus has spread widely. A poultry health expert previously interviewed by the newspaper indicated that this avian influenza spreads globally through migratory birds.

According to Mexico’s National Food Safety and Animal Health Department (SENASICA), since the first major outbreak of avian influenza in 1994-1995, Mexico has faced intermittent avian influenza outbreaks.

The institution indicates that due to Mexico’s numerous waterfowl and wild duck habitats, the risk of avian influenza transmission remains high. These birds are known to be carriers of the virus, migrating to Mexico between September and April.

Mexico experienced 181 outbreaks of avian influenza between January 2022 and August 2024.

Greg Tyler, the President, and CEO of the USA Poultry & Egg Export Council, informed the newspaper that Mexico employs a veterinary strategy known as “vaccinate-to-live” for its commercial poultry, where sick poultry are vaccinated instead of culled in hopes that a weaker virus infection will induce antibody production for virus resistance.

In the U.S., the preferred method to control avian influenza since its first outbreak in 2015 has been culling to limit the spread between farms and prevent the virus from mutating into more deadly forms.

Tyler mentioned that it is challenging from a global trade perspective for poultry to survive through vaccination since vaccinated live poultry may appear healthy but could be asymptomatic carriers, potentially transmitting the virus across borders. U.S. poultry breeding companies supply live breeding poultry to farms worldwide.

Tyler added that Mexican authorities remove the sick poultry from commercial houses while keeping other poultry. Additionally, Mexico is a significant destination for U.S. egg exports.

A senior official from the USDA, in an interview with the newspaper, pointed out that the U.S. does not allow egg imports from Mexico due to lower health and food safety standards in Mexico.

The latest data published by Mexico’s National Information and Market Integration System reveals that egg retail prices in Mexico City are 46 Mexican pesos per kilogram (approximately 20 eggs), equivalent to about $2.26 per dozen (12 eggs) calculated at the exchange rate as of March 30.

Tyler, speaking from Mexico during the interview, noted that this price is expensive for Mexican consumers as the per capita egg consumption in Mexico exceeds that of any other country in the world.

However, a senior official from the USDA mentioned to the newspaper that Mexico’s official price data might be unreliable as many eggs sold in the country are directly purchased from local smallholders.

Tyler stated that the Mexican government has recently implemented price controls on staples like eggs to combat inflation.

The cheaper farm labor in Mexico compared to the U.S. is also a contributing factor to lower egg prices.

While poultry farms in Canada have also been affected by avian influenza, the demographic and land area characteristics of Canada result in different patterns of avian influenza outbreaks. The most recent detection of avian influenza in Canada was reported on March 24 in Lambton County, Ontario.

The Canadian government has imposed movement controls on farm animals nationwide, with import controls continuing as of March 19.

As of February 25, approximately 15 million commercial poultry in Canada were impacted by the virus. This number includes poultry that died from the virus and poultry that were culled.

Before the outbreak that started in 2021, Canada managed limited avian influenza outbreaks in 2010, 2014, 2015, and 2016.

According to data from Statistics Canada, over the past five months, egg prices in Canada have remained stable at around $4.80 CAD, approximately $3.36 USD.

Since 1972, Canada has enforced a supply management system on its dairy, poultry, and egg production to maintain price stability and restrict imports. This system aims to protect against disruptions in the supply chain, support food sovereignty, and maintain stable farm incomes.

The national organization managing Canada’s egg supply, the Egg Farmers of Canada, stated that this system safeguards the industry from supply chain disruptions, supports food sovereignty, and maintains stable farm incomes.

The size of individual egg farms in Canada is significantly smaller than their U.S. counterparts. Bruce Muirhead, the Chair of Public Policy at Egg Farmers of Canada, mentioned in an interview with CBC in February this year that Canadian egg farms typically raise around 25,000 laying hens while U.S. farms can house millions of hens.

Muirhead highlighted that smaller flock sizes in Canada can help avoid catastrophic losses seen on U.S. farms. He told CBC that the huge scale of U.S. farms under normal circumstances contributes to keeping egg prices low. However, in case of unexpected supply chain issues such as those caused by avian influenza outbreaks, egg prices can fluctuate significantly.