Published on March 10th, 2026
Key Drivers:
The year began with 311 million laying hens, but 13 million layers were lost to HPAI in January and February.
March 1st layer numbers are estimated to have dropped to around 300 million.
Historically, when the flock size is at or below 300 million, egg prices trend above $2/dozen.
Current market dynamics and reduced flock numbers indicate that egg prices are headed higher.
Outlook: Egg prices are expected to continue their upward trend as supply remains constrained by recent HPAI losses.
Key Drivers:
February 1 freezer inventories reached their lowest levels since the Covid-19 pandemic.
Inventory accumulation in January ran at only two-thirds of the normal pace, tightening available stocks.
Strong domestic use paired with record-pace exports is keeping demand ahead of large cream supplies.
Outlook: Butter futures show prices increasing to near $2.25/lb by Spring as demand outpaces inventory builds.
Key Drivers:
Cheese production has increased by over 3%, but frozen inventories are not showing a corresponding build.
Inventory levels at the start of the year were very similar to those recorded in January 2024 and 2025.
Market prices have moved back into the $1.45-$1.65 range, which is consistent with trading patterns from the last two years.
Outlook: Cheese futures show prices staying in the same price range they were in during the last two years.
This comprehensive research empowers you to make informed business decisions. The information contained in this monthly market update is for informational purposes only. It represents our best estimates of commodity market conditions and is subject to change without notice. While we strive to provide accurate information, Gordon Food Service cannot guarantee the completeness or accuracy of the content. Any reliance you place on this information is strictly at your own risk.
Search Our Site…
