Why is Costco Out of Eggs? The Frustrating Reality of the 2026 Supply Chain

Why is Costco Out of Eggs? The Frustrating Reality of the 2026 Supply Chain

You walk into the warehouse, past the oversized televisions and the seasonal patio furniture, heading straight for the back. You’ve got your list. You’ve got the giant cart. But when you hit the dairy cooler, there’s nothing but empty metal shelving where the five-dozen packs of Kirkland Signature eggs usually sit. It’s a ghost town. Honestly, it’s enough to make you want to abandon the whole trip.

If you’re wondering why is Costco out of eggs, you aren't alone. It’s been a recurring nightmare for shoppers across the country lately. It isn't just one thing. It's a messy, complicated pile-up of biological disasters, logistics hiccups, and the way Costco specifically handles its inventory.

Buying in bulk makes us feel safe. When that safety net disappears, it feels like the economy is glitching.

The Bird Flu Shadow That Won't Go Away

The biggest culprit is the Highly Pathogenic Avian Influenza (HPAI). We’ve been hearing about this for years, but 2025 and early 2026 have seen some of the most aggressive "spillover" events in recent history. When a single bird in a commercial flock tests positive, the entire flock has to be culled. We’re talking millions of birds gone in a matter of days to prevent the spread.

According to the USDA’s Animal and Plant Health Inspection Service (APHIS), these outbreaks haven't just hit small farms. They've decimated the large-scale producers that supply the massive volume Costco requires.

When a farm loses five million hens, you can't just "replace" them by next Tuesday. It takes months to sanitize the facilities, get new chicks, and wait for those chicks to actually start laying eggs. It’s a biological bottleneck. You can't speed up nature, no matter how much money Costco throws at the problem.

The Costco Membership Trap

Costco has a specific problem that your local grocery store doesn't: the membership model. Because Costco commits to keeping prices as low as humanly possible, they often become the cheapest place in town to get protein. When egg prices spike at Kroger or Safeway, everyone rushes to Costco.

This creates a "run" on the product.

Even if Costco gets a shipment, it disappears in two hours because members are grabbing two or three of those 24-count or 60-count packs. The demand is artificially inflated by the fear of a shortage, which—ironically—creates the very shortage everyone is afraid of. It's classic herd behavior.

Why the "Limit 2" Signs Keep Popping Up

You've probably seen the signs. One pack per member. Two packs per member.

Costco hates doing this. Their whole brand is built on "buy as much as you want," but they have to play referee when the supply chain breaks. This isn't just about being fair; it’s about preventing "resellers" from clearing out the pallet to sell eggs at a markup to local restaurants or smaller convenience stores.

The Logistics Nightmare of Cold Chains

Eggs are heavy. They’re fragile. They have to stay cold.

The trucking industry in 2026 is still grappling with a shortage of refrigerated "reefer" trailers and qualified drivers. If a shipment is delayed by 24 hours due to a breakdown or a storm, those eggs might not make it to the shelf at all if the temperature deviates. Costco’s lean inventory system means they don't keep weeks of backstock in a warehouse. They rely on "just-in-time" delivery.

When the "just-in-time" becomes "not-this-time," the shelf stays empty.

The California Factor and Cage-Free Mandates

State laws have changed the game. California’s Proposition 12 and similar laws in states like Massachusetts or Colorado require eggs to be "cage-free."

Costco has been moving toward 100% cage-free for a long time, but these legislative shifts mean they can't just source eggs from any farm in the country to fill a gap. If a "regular" farm has eggs but doesn't meet the specific cage-free certifications required by the state where the Costco is located, those eggs can't be sold there.

This segments the supply. It makes the inventory less "fluid."

It’s a noble goal for animal welfare, but in the short term, it makes the supply chain incredibly brittle. Producers have to spend millions retrofitting barns, and many smaller farms have simply gone out of business rather than trying to keep up with the changing regulations.

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Is the "Egg-pocalypse" Ending?

Probably not this month.

Experts like Brian Moscogiuri, a global trade strategist at Eggs-Anywhere, have noted that the volatility in egg markets is the "new normal." We’re seeing a shift where the price of eggs is no longer a stable utility like salt or flour. It’s becoming more like gasoline—fluctuating wildly based on international health reports and transportation costs.

Costco is reportedly looking into more direct-to-farm contracts to bypass the middleman, similar to how they own their own chicken rotisserie supply chain in Nebraska. But for now, they are at the mercy of the open market.

What You Should Actually Do Instead

If you’re staring at an empty shelf and you really need your morning omelet, don't panic. There are ways to handle this without driving to five different warehouses.

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  • Go Early, But Not Too Early: Most shipments are unloaded overnight and hit the floor as soon as the doors open. If you aren't there by 11:00 AM, the "morning rush" has likely cleared the stock.
  • Check the Business Centers: If you live near a Costco Business Center, try there. They cater to restaurants and often have different supply chains than the standard "consumer" warehouses.
  • Look for Egg Whites: Often, the cartons of liquid egg whites remain in stock even when the shell eggs are gone. They have a longer shelf life and are biologically easier to process and ship.
  • Diversify Your Shopping: Sometimes the local "expensive" grocery store or a farmers market has eggs because their prices are high enough to deter the bulk-buyers.

The shortage isn't a conspiracy. It’s a perfect storm of biology, law, and consumer panic. It'll settle down eventually, but for now, you might have to get used to the "Out of Stock" sign being a regular part of your weekend errands.


Actionable Next Steps

  1. Download the Costco App: Use the "Warehouse" tab to check if your specific location has had recent restocks, though be warned that the inventory updates aren't always real-time.
  2. Call the Administrative Desk: Before you drive 45 minutes, call the warehouse and ask for the "administrative" or "membership" desk. They can check the "On Hand" count for Item #1241165 (the 2-dozen pack) or Item #3225 (the 5-dozen pack).
  3. Consider Frozen or Dried Alternatives: If you use eggs primarily for baking, keep a small container of egg powder or "flax eggs" in your pantry so a Costco shortage doesn't ruin your weekend meal prep.