Cracking Open the Carton: An In-Depth Look at Walmart‘s Cheap Egg Prices

As a savvy shopper and retail industry expert, I know that Walmart is often the go-to place for bargain hunters looking to score the lowest prices on household staples like eggs. With a dozen large white eggs regularly priced under $2, Walmart easily beats out most of the competition. But as a conscious consumer, I also like to know the story behind those prices. Are Walmart‘s cheap eggs too good to be true?

Walmart‘s Egg Economics

There‘s no question that Walmart dominates the U.S. grocery market, including egg sales. The retail giant sells an estimated 25% of all groceries in the country and likely an even higher percentage of the 100 billion eggs produced annually. With that kind of volume, Walmart wields significant power over suppliers.

Walmart‘s famous efficiency and ultra-low prices are only possible because of the massive scale at which they operate. They sell more of everything than their competitors, which allows Walmart to negotiate rock bottom prices from egg producers. Even a few cents shaved off the wholesale price of a dozen eggs adds up to major savings when you‘re selling millions of dozens.

But economies of scale aren‘t the only factor at play. Walmart‘s cheap eggs also have a lot to do with where they come from. The vast majority of Walmart‘s "Great Value" store brand eggs are sourced from giant factory farm operations that house millions of laying hens in intensive confinement.

Egg Production System Description Avg. Price per Dozen
Conventional battery cage Hens confined to small wire cages, less than 1 sq ft per bird $1.60
Cage-free Hens not in cages but still confined to crowded barns $2.75
Free-range Cage-free hens with some access to the outdoors $3.50
Pasture-raised Hens with ample outdoor space and natural diet $5.00+

Sources: The Happy Egg Co., Humane Society, Consumer Reports

The Real Cost of Cheap Eggs

The unfortunate reality is that the cheapest eggs come from farms with the worst animal welfare conditions. Over 90% of U.S. eggs come from hens packed into small wire "battery cages" that allow each bird less space than a sheet of paper. Hens are unable to spread their wings or engage in natural behaviors like nesting, perching, or dust bathing.

Intensive confinement isn‘t just cruel, it‘s also a major public health risk. Filthy, cramped conditions are a perfect breeding ground for salmonella and other dangerous pathogens. A 2010 salmonella outbreak that sickened over 1,900 people and led to a recall of half a billion eggs was traced back to a massive Iowa egg farm that confined over 7 million hens in battery cages.

So why do factory farms that supply Walmart and other major retailers continue to use battery cages? Simply put, it keeps costs down and profits up. Cramming more birds into less space reduces production costs. Caged facilities are also easier to automate, requiring less labor. It‘s all about efficiency over animal welfare.

But the tide is starting to turn on battery cages as consumers become more aware of the cruelty involved. States like California, Colorado and Michigan have passed laws banning the sale of eggs from caged hens. Many major restaurant, foodservice and retail brands have also committed to going 100% cage-free.

Walmart‘s Cage-Free Transition

Back in 2016, Walmart pledged to source all of its shell and liquid eggs from cage-free farms by 2025 for both its U.S. and Canada stores. At the time, only about 25% of the industry had made similar commitments to ditch cruel battery cages.

Animal welfare groups cautiously applauded the move while also pointing out that cage-free doesn‘t necessarily mean cruelty-free. Most cage-free egg farms still confine thousands of birds to crowded barns without any outdoor access. Hens can suffer from issues like overcrowding, feather pecking, and lack of enrichment.

"Going cage-free is a step in the right direction, but it‘s not the end of the journey," said Josh Balk, vice president of farm animal protection at the Humane Society of the United States. "Cage-free is a minimum first step, and I hope that Walmart will continue to innovate and improve on its animal welfare commitments."

As of Walmart‘s latest progress report in July 2021, about 35% of its shell eggs now come from cage-free sources, up from 12% in 2018. But with their self-imposed 2025 deadline looming, can Walmart make good on its promise? And will cage-free eggs still be the cheapest choice for budget shoppers?

Decoding Egg Carton Labels

If all these different labels and claims on egg cartons leave you confused, you‘re not alone! Terms like "farm fresh," "natural," and "hormone-free" have no defined standards and are basically meaningless. Egg color also has nothing to do with quality or nutrition.

To cut through the noise, look for eggs with verified third-party animal welfare certifications. These programs have specific standards for how laying hens must be housed and cared for. While certified eggs usually cost more, you can feel better knowing that your purchase supports more humane farming practices.

Some of the most meaningful certifications to look for include:

  • Certified Humane: Hens have at least 1.5 square feet of floor space each and must have litter for dust bathing, perches for roosting, and nest boxes. No cages are permitted.
  • Animal Welfare Approved: These pasture-raised hens must be outdoors year-round with mobile or fixed housing where they can seek shelter. They have maximum freedom to engage in natural behaviors.
  • American Humane Certified: This certification requires at least 1.0 square foot per bird for cage-free systems. Enrichments like nest boxes and dust-bathing materials must be provided.
  • USDA Organic: Organic eggs must come from cage-free hens given organic, non-GMO, pesticide-free feed and some outdoor access. Beak cutting and forced molting are prohibited.

Plant-Based Egg Alternatives

For those wanting to avoid animal products altogether, the rise of realistic plant-based eggs in recent years offers an exciting new option. Made from ingredients like mung bean protein or soybeans, these vegan eggs are rapidly gaining traction with mainstream consumers.

Products like JUST Egg, Simply Eggless, and Follow Your Heart‘s VeganEgg are now widely available at retailers including Walmart. Most of these products come in liquid form and can be scrambled, made into omelets, or used in baking as an egg replacer.

According to the Good Food Institute, plant-based egg sales surged 168% in 2020 and now make up about 0.5% of the total egg market. While still a tiny minority share, this segment is expected to see major growth in the coming years as more consumers embrace flexitarian eating.

"We‘ve seen plant-based milks grab more than 10% of the fluid milk market, and now the egg category is ripe for similar disruption," noted Caroline Bushnell, director of corporate engagement at the Good Food Institute. "Consumers are hungry for egg alternatives that are more sustainable and animal-friendly, and food companies are responding to that demand with innovative plant-based options."

What‘s Next for Walmart Eggs?

As the king of low prices, Walmart is unlikely to abandon its reputation for having the cheapest eggs anytime soon. But with growing consumer pressure for better animal welfare and looming cage-free deadlines, change is on the horizon.

For now, I believe Walmart‘s commitment to go 100% cage-free by 2025 is an important step in the right direction. But I would like to see the company go even further by setting clear targets for moving toward even higher welfare eggs in the future, such as those from free-range or pasture-raised farms.

Offering more plant-based egg choices is another area where I think Walmart could be a leader. The company has already embraced plant-based meats, and adding more vegan egg products would give shoppers even more options. Promoting these animal-free selections for Meatless Mondays or in egg-centric recipes could help drive demand.

At the end of the day, I believe consumers will have to use their purchasing power to show Walmart and other retailers that animal welfare and sustainability matter to them just as much as price. If enough shoppers start voting for more ethical eggs with their dollars, Walmart will have no choice but to listen and adapt.

My advice? Start by choosing certified eggs whenever possible to ensure a basic level of hen welfare. If you can afford it, try springing for pasture-raised eggs from a local farmer for the highest animal care standards and a smaller environmental footprint. And don‘t forget to give some plant-based egg products a try to see how they stack up.

The more we educate ourselves about where our food really comes from, the better choices we can make for the planet, animals, and our own health. Walmart may drive the market for cheap eggs, but informed consumers can drive the demand for eggs that are more humanely and sustainably produced. That‘s the kind of bargain I can really get behind!