Free range eggs are now being used as loss leaders by supermarkets, according to the British Free Range Egg Producers Association (BFREPA).
BFREPA said supermarket promotions are putting more and more pressure on free range egg producers.
Robert Gooch, CEO at BFREPA, drew parallels with milk prices.
"It is a similar sort of situation. Supermarkets are using free range eggs as loss leaders. There have been a lot of promotions over the last 24 months."
As Farmers Guardian reported, experts have warned retailers are preparing for another price war this summer which can directly affect the price a producer receives.
Mr Gooch said he was concerned about the long term impact retailers promotions.
"Retailers promotions stimulate demand. The producers are then asked to increase production.
"When the promotion stops, demand drops and we are then in an oversupply situation."
Tesco has recently announced it would be stopping stocking eggs from caged hens by 2025. This follows Sainsbury’s, Marks and Spencer and Aldi making similar commitments. Iceland will also stop stocking caged hens’ eggs by 2025 and there is pressure on other retailers to make similar pledges.
Mr Gooch said he is worried this will drive down prices even further. The current cost of production for free range eggs is about 91p for half a dozen.
"I am worried if there are no eggs from caged hens then free range eggs will not be seen as a premium.
"Iceland was recently selling free range eggs at 50p for half a dozen, way beneath the cost of production and packing."